Netflix Announces Streaming Only Plans and Higher Prices for DVDs 488
micsaund writes "While Netflix has continued to drop fees and still maintain a good services, today, they take three steps in the other direction by doubling the cost of the plan you probably already have: 'So for instance, our current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans ... Unlimited Streaming (no DVDs) for $7.99 a month ... Unlimited DVDs, 1 out at-a-time (no streaming), for $7.99 a month. ... The price for getting both of these plans will be $15.98 a month ($7.99 + $7.99).' Now, if they could get everything available on streaming, this would be fine, but how many times have you needed to get a physical disc for that oddball movie, or had a movie in your instant queue that magically disappears due to some behind-the-scenes contract expiration or whatever?"
Blame the content makers (Score:5, Informative)
The estimate is that in 2012, Netflix's license fees will go from $180 million in 2010 to $1.98 billion in 2012, according to this [cnn.com].
Its going to be very hard for anyone to become the legal clearinghouse for media at a price point most consumers see as reasonable because the studios won't allow it.
The content owners are squeezing. (Score:4, Informative)
This should have been seen as inevitable, since it's been made clear that the content owners have been floored by the success of Netflix and are trying to negotiate much better terms for themselves now.
I'm delighted at how little my own costs are going up (less than 8% I think).
I'm also a little frustrated that so many people are reacting so strongly to this -- the content owners would all rather force us into "Hulu+" (with subscription plus advertising), or to "Zune Marketplace" or "iTunes" (per-episode purchase or rentals), or back to cable operators, and all the folks who are dropping their Netflix subscriptions are helping that happen. Ah well.