My email just notified me that prices are increasing by 60 percent. I’m not talking the price of gasoline. It’s my Netflix subscription.
“It’s been a 95% negative reaction,” says Dan Rayburn, a principal analyst with Frost & Sullivan. That’s no surprise, considering that many subscribers stand to pay an extra $72 per year under the new plans, without any change in service.
The current Netflix service for streaming videos and unlimited movies by mail is $9.99. Netflix has announced a dramatic change in their pricing scheme. The streaming service and movies by mail will each be split into two different services for $7.99 each. Thus, what was $9.99 is now $15.98. And all a mere 8 months since the last time they raised prices (about a 10% increase). All told, Netflix has raised prices 78% in less than a year.
As saddening as this news is, I can’t say that I’m surprised. Some products become cheaper over time. Think of laptops; once $2,500, now $500. Entertainment has always been something that becomes more expensive. Movie tickets, cable and restaurants have all become more expensive. It reminds me how painful inflation can be for the family finances. Luxuries that once were easily affordable can, over time, spin painfully out of your budget.
With such a dramatic price increase, I’m left to wonder if my Netflix subscription is still worth the price? There are plenty of other similar entertainment companies vying for my business. Hulu Plus for $8 a month comes close, but doesn’t offer a movies by mail service. Redbox has rentals for a $1, but no streaming. There’s Xfinity Internet, which let’s you watch the newest TV shows and movies at about $30 a month without purchasing the internet bundle. Comcast is a great company and I’ve heard nothing but good things about Xfinity. It’s worth a look.
There just isn’t any other service that offers streaming TV and movies by mail. Now thanks to Netflix’s new pricing scheme nobody does.
Is streaming videos and movies by mail worth it? Not for me, so I’ll be saving $2 a month by only subscribing to their streaming videos service.