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Netflix announces price increases for new customers

Discussion in 'Internet Streaming Services' started by dpeters11, Apr 21, 2014.

  1. dpeters11

    dpeters11 Hall Of Fame

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  2. Go Beavs

    Go Beavs Hall Of Fame

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    That's kind of refreshing... Existing customers get lower pricing while new customers get the increase. Usually it's the other way around.
     
    2 people like this.
  3. Stewart Vernon

    Stewart Vernon Leapin' Lizard Staff Member Super Moderator DBSTalk Club

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    You can bet it doesn't last long... they grow the business by adding new customers. If a new customer has to pay more than an "existing" customer... what happens once that new customer becomes an existing customer and wants to know why he is paying more than another existing customer?
     
  4. coolman302003

    coolman302003 2014 NBA CHAMPIONS!

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    It is really inevitable, in my opinion.
     
  5. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The same thing that happens with our satellite services when someone who signed up yesterday got a different discount than someone who signed up today after the offer ended. Or a person on a grandfathered cell phone plan who gets a better rate than new customers. The world is full of "buy now and save" that doesn't apply to customers after the window.
     
  6. mwdxer

    mwdxer Well-Known Member

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    I have always been surprised that Netflix charges the same for a streaming customer as a 1 DVD at a time one. They have the extra cost of postage.
     
  7. snowcat

    snowcat Legend

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    I would think that physical media and the supporting staff is still cheaper than the cost for all the streaming rights. So it doesn't surprise me that the price is the same.
     
  8. oldschoolecw

    oldschoolecw HarpoonIPA

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    It's still a great deal for new customers and if and when our grandfathered bills go up, I will pay the required amount. NetFlix is an Awesome service that has the programming I want
     
  9. sigma1914

    sigma1914 DIRECTV A-Team DBSTalk Club

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  10. Stewart Vernon

    Stewart Vernon Leapin' Lizard Staff Member Super Moderator DBSTalk Club

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    My point was...

    If you're a business (making up numbers for the example)... and you have a million customers... and you raise prices for new customers and over the next year you add 300,000 new customers... what happens when those new customers want to know why they are paying more? Once you've added a bunch, you become dependent on that income from them... but they start to number enough to want the same deal as other existing customers.

    What's the difference in a 2 year "existing" customer and a "new" one who has now been with you for a year?

    Not talking about bonuses for signing up that new customers get or temporary discounts... but a pricing tier that is only related to whether you were there last week or not.

    The grandfather of prices like this never lasts long with companies before they force everyone onto the new pricing scheme.
     
  11. markfp

    markfp Legend

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    I feel I get more than my money's worth with Netflix, so while I'm happy to keep the current price for as long as I can. If, at some point, it goes up a buck or two, it wouldn't be a deal breaker for me.
     
  12. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Congratulations ... you have answered your own complaint.

    Everyone who has Netflix now will be billed for their Netflix service. New customers will be sold Netflix 2 service (or some billing code where Netflix knows if it is an old grandfathered price or a new price. The same way DirecTV offers old grandfathered TV packages. Eventually grandfather dies and the old customers get Netflix 2 service. It is all done on the backend.
     
  13. damondlt

    damondlt New Member

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    When netflix gets to $20 a month, then let's start complaining. Until then it's only about 2% of my current Directv bill.

    Sent from my Galaxy S5
     
  14. Stewart Vernon

    Stewart Vernon Leapin' Lizard Staff Member Super Moderator DBSTalk Club

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    Yeah, that's the easiest way to do it. I was thinking more of the people who will cheer "yeah, screw the new guy"... not understanding that this is eventually the way the cookie will crumble.
     
  15. jdspencer

    jdspencer Hall Of Fame

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  16. damondlt

    damondlt New Member

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    Nice!

    Sent from my Galaxy S5
     
  17. Stewart Vernon

    Stewart Vernon Leapin' Lizard Staff Member Super Moderator DBSTalk Club

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    Interesting... so then Netflix becomes a $10+ a month cable channel in that scenario... I wonder if the "it's a great deal for $10 a month" people will feel about that?
     
  18. sigma1914

    sigma1914 DIRECTV A-Team DBSTalk Club

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    From the sounds of the article, it seems like it's not a channel in the traditional sense. It sounds like a channel that's really just an integrated app.
     
  19. inkahauts

    inkahauts DIRECTV A-Team

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    Sounds like they want to launch an on demand channel
    To me.
     
    1 person likes this.

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