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New Netflix Rates Will Delay My Cord Cutting

Monthly fee goes from $10 to $16. Looks like Redbox is the big winner.


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With Netflix rate increases, looks like I won’t be cutting the cord any time soon. Redbox, here I come.

With Hulu Plus and Netflix, I was so close to cutting the cable cord. But now Netflix has gone and raised prices by 60% -- from $9.99 per month to $15.98 per month – for unlimited streaming and one disk per month.

You can have one or the other – streaming or hard disk – for $7.99 per month.

Here’s how the email exchange went with my husband:

Him: [forwarding notice from Netflix] Netflix raising prices

Me: [expletive] What would you like to do? Just streaming? No hard disks? We always use Redbox anyway. Or just drop them altogether?

Him: Let's just keep getting disks. We never really stream anyway.

Speak for yourself, mister. I happen to enjoy streaming Netflix to my iPad on a lazy Sunday morning or sleepless weekday night. So I guess that’s how Netflix plans to get away with the new pricing plan – pitting spouse against spouse.

And, by the way, that extra $6 per month coincides with the disappearance of Sony titles from the Netflix library.

Netflix rates have gone up and down, just as its favor among content providers. Ditto for Hulu Plus and no doubt other services that come and go.

So what is a prospective cable cord-cutter to do? Switch to satellite for two years for the "new customer" deal, and then switch back to cable after that. I won’t be cutting the cord any time soon.

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Article Topics

Blogs · Video · Digital Media · Netflix · Cable Cord · Hulu Plus · All topics

About the Author

Julie Jacobson, Editor-at-large, CE Pro
Julie Jacobson is co-founder of EH Publishing and currently spends most of her time writing for CE Pro, mostly in the areas of home automation, networked A/V and the business of home systems integration. She majored in Economics at the University of Michigan, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. Julie is a washed-up Ultimate Frisbee player with the scars to prove it. Follow her on Twitter @juliejacobson.

25 Comments (displayed in order by date/time)

Posted by Steve Crowe  on  07/13  at  06:13 AM

I just canceled streaming on my plan. Streaming was nice on the iPad while on vacation or visiting relatives, but it was always re-runs of shows I’ve seen a million times. Not worth paying for, in my book.

Posted by joel degray  on  07/13  at  06:18 AM

I wonder how long it will be before the movie selections dwindle as the studios renegotiate their cut and the cable companies throttle back bandwidth and charge more for the traffice associated
with these services, especialy when the cable cos want to promote their services.
It would seem as though many of you bought into something that isn’t really built out yet. DONT THROW AWAY YOUR DVDs YET!

Posted by Steve Crowe  on  07/13  at  06:20 AM

In order for Netflix to be worth it, they have to improve their content that can be streamed. I don’t mind paying a higher price, but get some newer movies in there. And I hate waiting two days for get a new movie in the mail, that whole model seems outdated, but at least it will be something I’ll want to watch.

Posted by joel degray  on  07/13  at  06:26 AM

It’s not only new titles- Spaceballs and other such items are not available either.
So now, you wait for something to be mailed to you instead of owning it..

Posted by WhyReboot  on  07/13  at  07:31 AM

I cut the cord years ago and have found that using an off-air network based HD tuner, Media Centers infused with Boxee and Hulu plugins, and paying only for Netflix streaming and movies mailed to me I have had more content than ever before.  Best of all it’s all wrapped up in one neat little package and all controlled via remote with a gorgeous interface.

I just received the email last night from Netflix and I have to say this is going to be a hard decision.  The whole reason I cut the cord was because I didn’t think that it was worth paying a cable company every month for something I rarely use.  The only thing I’ve been paying for is Netflix at about $11 a month because I also want BluRay’s mailed to me.

Cutting the cord actually turned out to be a good thing not only because of the money savings but also because I actually had more content.  If Netflix is going to be close to double for me now then I don’t know if it’s worth it anymore.  Besides, as Steve Crowe mentioned, they really don’t have any newer movies available for streaming.  I guess I’m going to have to ponder what my next move is.

Posted by Steve Crowe  on  07/13  at  07:36 AM

WhyReboot, I’ve never been able to cut the cord because of sports. How would I catch my beloved Celtics and Red Sox? I guess I could sign up for NBA and MLB packages that would be cheap for the entire year, but I’d miss too many other sporting events. ESPN360.com is pretty sweet, but they don’t offer enough. Any thoughts?

Posted by WhyReboot  on  07/13  at  07:44 AM

Ahhh, well that’s the clincher.  If you’re a major sports fan then this really isn’t for you yet.  I must admit, I don’t have time for sports.  I do watch most of the FSU games and they happen to be on ESPN3 which I created an entry point for in Media Center to take me directly to the live stream.  Other than that I watch whatever comes on live on the networks via off-air HD.  My wife is also not really a big fan so it works well for us.  However, I know most of the people out there need their sports fix so that IS a very hard decision for them.

If you like baseball I’m almost positive that Boxee has an MLB channel that shows all of the games there.

My whole thing with cutting the cord is that everything I watch must be available via a remote control and a 10’ interface.  If I have to use a mouse or keyboard then I don’t want to watch it.  Luckily as I don’t really catch much sports I don’t really have that problem and I never have to pull out the keyboard and mouse.

Also, if there are any major games on that I don’t have normally my friends are all watching at somebody’s house with a BBQ anyway.  It’ll get there where you can get EVERYTHING via the internet, but I think when it does we’ll just be cutting one cord and trading it for another (CAT5e/CAT6), and at the same price.

Posted by Steve Crowe  on  07/13  at  07:49 AM

Just bought a house in a town that only offers Comcast. I currently have FiOS and thought that was expensive, apparently Comcast is more. If you could develop something and solve that sports problem for me, that’d be great. Haha, thanks!

Posted by Mark  on  07/13  at  07:58 AM

So the author was close to cutting the cord to save (probably) around $100, but the extra $6 for Netflix makes her not want to?

Yeah…..that’s just sound fiscal sense, right there.

Here’s another thought: The author is unhappy about the extra $6 (because that would require a second job and probably dipping in your kids’ college fund to swing that each month), and is just throwing out the cutting the cord thing for absolutely no reason.

Posted by Julie Jacobson  on  07/13  at  08:02 AM

Nah, it just reminds the author that these streaming services are finicky with constant changes in rates and rules and most importantly content. The author just wants to see how these services pan out.

Posted by Steve Crowe  on  07/13  at  08:02 AM

Mark, it’s more about the principal than anything. Since I’ve been a Netflix member, they’ve raised prices 2-3 times without improving the content. Netflix raised the price and hopes the PR storm calms down and people forget about price increase.

Posted by Mark  on  07/13  at  08:15 AM

@Steve

If it’s the principle, then the author shouldn’t be passing it off as an excuse to not save a hundred dollars every month by cutting the cable to save $6 on Netflix.

And yes, they’ve raised prices in the past, but also:

1) When I signed up for Netflix years ago, there was no streaming, and it’s always been considered “free” to the disc plans.

2) They have indeed improved….From no streaming to streaming to the PC to streaming to select devices in 1080p/5.1 in a few short years. There is now tons of stuff to stream, many many many (I’ve read as many as 400) devices now. I have an app for my Android phone and my iPad 2 that stream (over 3G nonetheless). I can stream to my PS3 in 1080p/5.1, and I could go on.  To say they haven’t “improved” is just not true.

Regardless, I don’t mind the increase (going up $4 for me on the 3 disc plan).  I guess I don’t have enough “principle” to complain about the relatively small price increase for something that provides so much value to me.

That is all.  Please continue with the interwebz temper tantrums over a few bucks for entertainment.  Take the $6 you’ll be saving and buy 1/2 a movie ticket with it instead.

Posted by Steve Crowe  on  07/13  at  08:27 AM

Mark, for me, it’s just not worth it. I can afford the extra $6/month, but the service doesn’t make sense to me. Example, the other night some friends and I wanted to rent Hall Pass. I rented it On Demand in HD for $6 because I couldn’t get it on Netflix. So anytime I want to rent a newer movie, I either get it On Demand or download it from the PS3 Network, which takes hours. If Netflix could work out a deal with the studios that would allow me to stream Hall Pass after it left the theaters, then Netflix would be worth it. Also, I’m trying to get into the HBO show “Hung.” But I have to watch 1 DVD, mail it back, wait 2 days, get the next DVD, etc. Why can’t they make that available for streaming? I get the fact that it has to do with licensing, etc., but these are the types of things I would like to see from Netflix. Until that happens, it won’t satisfy my needs and I won’t pay for it. It’s not a matter of money.

Posted by John Nemesh  on  07/13  at  09:02 AM

Really, Julie?  $6 a month is going to make you change your lifestyle?  I know that any increase in monthly fees really kinda stinks…but think about it…what else can you buy with $6?  Not much…also, if you already have a Netflix account, these changes wont even affect you till September…

Posted by David Stroh  on  07/13  at  09:29 AM

Well I’m cutting the cord… On Netflix. I had already downgraded from 2 movies at a time to 1 when they negotiated 30 day delayed rentals on new releases from several studios. Now I have no reason to keep them altogether. Blockbuster offers me better service on mailed Blu-Ray’s and they include games. While their streaming isn’t up to par with Netflix, most of what the Netflix has in catalog I can view by other methods for free. It’s a sad day when the once innovative customer oriented Netflix turns into the big business green mongor that was the potential downfall for Blockbuster. I guess they haven’t taken a good look at their business model and what got them where they are and what lead to Blockbuster’s woes. Hopefully another innovative company with nothing to lose will come to the forefront and show Netflix the error of their ways. Raising rates 60% is pretty much a slap in the face to all consumers, especially in the current economy. Besides… I like my movies high def and uncompressed. Bit for bit identical to the master please.

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