All last night I kept seeing mentions about the Netflix price increase for Streaming plus DVD service. I won't say "I told you so," mainly because I didn't tell you so, but I think it was obvious.
Prior to this week, Netflix provided streaming and mail-order DVD rentals for roughly $10US. Frankly, I don't know how they handled the shipping. I seriously thought they were owned by the US Post Office, a belief I have not considered looking into. I can only imagine what their streaming costs them. Even if they have their own server farm, they are looking at high ISP rates. If their servers are owned by a third party, well they are getting charged a ton.
The increase is natural on two points. First, they were building a user base. You have to spend money to make money. They have enough customers now that they are literally driving video store chains out of business. Second, now that they are the best option for DVD rentals, they can turn up the heat. "You want what we don't stream? Pay me." Sure, there are still those DVD vending machines, but I can only assume they have a limited selection. Certainly my local Red Box does not have a copy of
Girl Slaves of Morgan Le Fay. Why would they?
The question for me, now, is how will they proceed? Will new movies still be primarily available through DVD, or will they expand their Instant selection? If they don't, why would I go to them for new DVDs? The Red Box and their ilk are perfectly fine for that, and I'd be lucky to get seven DVDs a month for the extra $7US which I could spend with Red Box for the same number.
Frankly, the only people getting hurt here are people with odd tastes, like me, and people without high speed internet access. Yes, there are people without broadband in this country.
It is actually the majority. Now, I make a good living, and if I have to buy
Chained Heat 2, then I guess I will. Also, the hurt to those without broadband will not be so great. A DVD only plan's cost does not change significantly from last week, and if you were not watching on Instant, then you won't miss it. Of course expansion of Instant movies will likely start replacing the availability of DVDs, and I can foresee DVD rentals becoming a thing of the past for Netflix. Good for me, bad for those without broadband.
The worst part about the whole thing is not related to the price change; not directly at least. Now the content wars are starting. Hulu+ is Netflix's main competitor, and recently made a streaming deal with Criterion. Criterion's catalog will start disappearing from Netflix, and if they are your cup of tea, you will have to go to Hulu. Say goodbye to another $15US. Eventually more distributors will follow suit. It will be the Coke and Pepsi of the internet.
Bottom line: this is a "white people problem." Yeah, I don't want to pay any more to Netflix, but I am just going to spend that $5-$7 on some other meaningless crap. If I don't like it, I'll drop Netflix. Maybe I'll do something productive, or read another book a month? When (according to the article cited above) an estimated 40% of the US population still has dial-up internet access, and another 30% have no in-home internet, it seems a tad petty to bitch about $7 a month. Privilege is not free. It wouldn't be privilege if it was.