25% is large as a percentage, but it’s 4 bucks. It’s the price of 1 crappy fastfood lunch, and only if you live entirely on the value menu.
You just documented it yourself. Every new release is between $15 and $20 at Target, 3 years ago they were mostly $12.99 and $13.99. And that’s OUR price, Netflix is a renter, they legally can’t be buying those for rent (just look at the blurb in the warning screen when you put a DVD in), they have to buy the rental license DVDs which are generally 3 to 5 times as much as we pay. Plus of course they’ve got the BluRay business, which generally run $5 to $10 more than DVD (for us, again multiply by 3 to 5 for rentals).
Again with the postage Netflix has probably had a LARGER increase. Because they’re shipping DVDs their envelopes are a non-standard size, their base postage is more. Now they do their own sorting to get the bulk rate going out, but they don’t get bulk rate on the return.
I don’t see why Netflix should have to explain that. It’s relatively easy to find information that’s been out for MONTHS before they announced the price hike that their streaming license fees went from around $700 million a year to over $2.5 billion. Anybody using the streaming service is on the internet, and so is this information. Anybody that can’t see how that increased Netflix’s cost per subscriber won’t pay attention if Netflix tells them.
I know there’s plenty of folks with tight money situations, but even in this time period $4 a month just isn’t that much money. It’s a touch over a gallon of gas. People just like to complain, there was an article that hit FR this weekend about the changes in society we’re seeing from the internet, about half their list can be seen in the discussions about Netflix’s rather minor price hike.
>>I don’t see why Netflix should have to explain that<<
Seriously?
You’ve never run a business, have you?
This is a service. If they want to keep customers, they keep them happy. THAT is why Netflix needs to explain that.
I agree. Personally I could care less, but I do understand why a lot of people are angry.
Actually, for people who just get DVDs I think the cost actually went down a bit.
You just documented it yourself. Every new release is between $15 and $20 at Target, 3 years ago they were mostly $12.99 and $13.99.
My memory of that is different. I seem to remember DVDs being MORE expensive ten or twelve years ago when DVDs were first coming out.
Netflix has contract rates for both what they ship and what comes back to them.
I don’t see why Netflix should have to explain that. It’s relatively easy to find information that’s been out for MONTHS before they announced the price hike that their streaming license fees went from around $700 million a year to over $2.5 billion. Anybody using the streaming service is on the internet, and so is this information. Anybody that can’t see how that increased Netflix’s cost per subscriber won’t pay attention if Netflix tells them.
I agree with you, but Netflix should have done a better job explaining all of this.