Netflix Raising Prices

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I've seen this announcement at a bunch of places, but I posted a couple comments at Hacking Netflix. Originally I thought they were just raising prices for the standard service, but it turns out they are raising them across the board. The more you rent, the bigger your increase. The 8-out users get reamed. I'm not particularly thrilled as a 5-out user, myself. And note none of these prices (old or new) includes tax.

I got a nice note from Netflix yesterday saying that they were raising their rates, and although they haven't offered the four-at-a-time plan in a few years (it's what I signed up for when they first started doing the tiered flat-rate plan), they were going to keep doing it for me for the same price as the three-at-a-time plan. And since I can turn around those four DVDs in about a week and a half to two weeks, they're probably losing money on me.

So I kinda feel responsible for this. Sorry.

Check out that Hacking Netflix thread again. In case you haven't seen it already, I posted something about Netflix claiming they lose money on any customer that rents more than five/month. Blows my mind.

I find it interesting that if you go to the Netflix web site and log out and then look at FAQ under How Much Does It Cost? it currently states that...

"Our standard rental program is $19.95 (plus tax) per month."

So have they just not gotten around to updating their web site, or are they redefining that Standard Rental means or are they only raising the prices for existing customers?

Forget it. I see that the new prices don't go into effect until June 15th.

So is anyone seriously considering taking a look at another Online DVD Rental service besides me?

GameZnFlix might be worth a look. Their prices match or beat Netflix (although they have no 2-out plan), and they have The Ox-bow Incident, which I've been trying to convince Netflix to carry for a dog's age. Their distribution centers are in "Los Angeles, California and Franklin, Kentucky, with plans for an additional two to three more centers during 2004." Depending on where those centers are, I might switch to them.

I am. I'd try GreenCine or Nicheflix right now, except my Netflix distribution center is so very close. I'm sure my postal latency would suffer with most other services (although I'd have to research where their distribution centers are).

Um, I just vented on that page you linked to. I had no idea they were increasing their prices. Yuck!

Good rant. It will be very interesting to see how the hikes affect their new memberships and churn.