Archive for July, 2011


The Great NetFlix Price Increase of ’11

Netflix is being blasted by people for its new pricing model. I don’t understand why people are getting so angry over what is a pretty slight increase. As it is now, if you have the streaming service with one DVD out at a time it’s $12. This is being separated into 2 services with streaming costing $8 and one DVD out costing $10. This is about a $6 a month increase. Consider that cable companies have been lobbying in the US and Canada to throttle bandwidth to try and destroy the NetFlix business model and that, because of competition, NetFlix licensing fees are increasing at an alarming rate with one analyst predicting that “…Netflix’s streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012” , even a small price increase for the amazing amount of content and the ease of use that NetFlix provides over standard cable and broadcast service is worth is to me, especially if it keeps the company in business. (more…)