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Guest Message by DevFuse

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Netflix announces price increases for new customers


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20 replies to this topic

#1 OFFLINE   dpeters11

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Posted 21 April 2014 - 08:59 PM

Existing customers will keep the old price for a time, possibly two years. New customers would see a $1 or $2 increase.

 

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#2 OFFLINE   Go Beavs

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Posted 21 April 2014 - 09:51 PM

That's kind of refreshing... Existing customers get lower pricing while new customers get the increase. Usually it's the other way around.


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#3 OFFLINE   Stewart Vernon

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Posted 21 April 2014 - 10:34 PM

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?


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#4 OFFLINE   coolman302003

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Posted 21 April 2014 - 10:40 PM

It is really inevitable, in my opinion.



#5 OFFLINE   James Long

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Posted 21 April 2014 - 11:04 PM

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?


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.
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#6 OFFLINE   mwdxer

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Posted 22 April 2014 - 03:18 AM

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 OFFLINE   snowcat

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Posted 22 April 2014 - 08:19 AM

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.

 

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.


Edited by snowcat, 22 April 2014 - 08:19 AM.


#8 ONLINE   jimmie57

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Posted 22 April 2014 - 08:43 AM

AT& T is getting in it now:

http://www.bloomberg...html?cmpid=yhoo


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#9 OFFLINE   oldschoolecw

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Posted 22 April 2014 - 11:22 AM

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?

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


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#10 ONLINE   sigma1914

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Posted 22 April 2014 - 11:28 AM

AT& T is getting in it now:

http://www.bloomberg...html?cmpid=yhoo

Now? There's no deal with NF and AT&T, yet.


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#11 OFFLINE   Stewart Vernon

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Posted 22 April 2014 - 01:45 PM

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.


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#12 OFFLINE   markfp

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Posted 22 April 2014 - 01:55 PM

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.



#13 OFFLINE   James Long

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Posted 22 April 2014 - 05:00 PM

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


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.
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#14 ONLINE   damondlt

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Posted 22 April 2014 - 06:44 PM

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

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#15 OFFLINE   Stewart Vernon

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Posted 22 April 2014 - 11:59 PM

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.

 

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.


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#16 OFFLINE   jdspencer

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Posted 26 April 2014 - 10:41 AM

Then there's this:

Netflix Is Launching Its Own Cable Channel

The next obvious question is "Will DirecTV carry it?"

And if it is, will it be in HD?


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#17 ONLINE   damondlt

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Posted 26 April 2014 - 11:28 AM

Nice!

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#18 OFFLINE   Stewart Vernon

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Posted 26 April 2014 - 02:48 PM

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?


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#19 ONLINE   sigma1914

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Posted 26 April 2014 - 02:54 PM

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.

 

Instead of streaming through a third party setup, like a Blu-ray player, those who already subscribe to Netflix would be able to set the TV to the right channel, thus launching an app that would enable buyers to stream whatever available content they want.


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#20 OFFLINE   inkahauts

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Posted 27 April 2014 - 09:48 AM

Sounds like they want to launch an on demand channel
To me.
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