Netflix Raised Our Rate

[MIGrandma]

We put our account (we've been a member for several years) on hold for the first time ever in November, for a 3-month period to get us through the holidays and our vacation. It automatically started back up on February 6th. Got the credit card bill a few days ago, they went from charging us $18.01 (3 DVD's out at a time, unlimited instant viewing) to $21.19. They never said a word about charging us more. I wanted to e-mail them and ask about it, but you can only call them. I hate talking on the phone, but it bothers me that they are charging us more without even letting us know the monthly rate would increase. Did it increase for everyone, or is it just because we put our account on hold? Anyone else ever have this happen with Netflix?

 

[Duckfan]

They increased it for everyone at every level unless you went from getting the DVD's to just streaming movies. They did it back in Nov I believe. It is not fun, but I still need to get the dvd's especially since not everything can be streamed.

 

[MIGrandma]

They increased it for everyone at every level unless you went from getting the DVD's to just streaming movies. They did it back in Nov I believe. It is not fun, but I still need to get the dvd's especially since not everything can be streamed.

Well, that will save me a phone call then to complain about the increase.

No, I never did hear about it. It must have happened near the time we put our account on hold. It seems like they would have sent me an e-mail about it though. Oh well, at least now I know. Thanks, Duckfan.

 

[The Mystery Machine]

The increase was publicized, you just missed the notification I guess. Sucks does it?

Do you have a wireless internet connection and Wii or other device? If not get one. The streaming is so much fun.

 

[Toad_Passenger]

Yeah I think everything went up $1 per DVD you get out. They did send stuff out about it. I wonder if you didn't get the notice because your account was on hold?

 

[bgirldeb]

I believe we received several email notifications about the accross the board price increase. Maybe if the account is on hold, the emails stop as well.

When you took the account off hold, didn't it give you pricing options? We put ours on hold for a month and I was informed of the price increase when taking it off hold as well.

Eta: found the email from 11/22/10

Dear (me),

We want to let you know about two important changes to the Netflix service.

1.** The price of your current plan is changing from $8.99 a month to $9.99 a month. This new price will be effective with your next billing statement on or after January 2, 2011, and will be referenced in your Membership Details. With your current plan you can both instantly watch unlimited TV episodes and movies on your computer or TV and receive unlimited DVDs by mail.

2.** We now also offer a new $7.99 a month plan which lets you instantly watch unlimited TV episodes and movies on your computer or TV. This plan does not include any DVDs. All the titles you can watch instantly on your current plan are also available on this new plan, and as a reminder, not all titles on DVD are available to watch instantly. This new plan is available immediately – if you'd like to switch to this new plan at any time, simply visit Your Account.

Why the changes? Our selection of TV episodes and movies available to stream has grown dramatically, and as a result most members want us to deliver unlimited movies and TV episodes two ways: streaming instantly over the internet plus DVDs by mail. The price change will allow us to continue to offer the popular plan choice of unlimited TV episodes and movies streaming instantly along with unlimited DVDs. The new plan, which does not include DVDs, is a great option for the increasing number of members who only want to watch instantly. The $7.99 a month price reflects no DVD shipping costs on this plan.

We hope you're enjoying great TV shows and movies from Netflix, and that you'll continue to enjoy Netflix on whichever plan you choose. We realize you have lots of home entertainment options, and we thank you for your business. As always, if you have any questions, please call us at 1-800-715-2146.

–The Netflix Team

 

[MIGrandma]

I believe we received several email notifications about the accross the board price increase. Maybe if the account is on hold, the emails stop as well.

When you took the account off hold, didn't it give you pricing options? We put ours on hold for a month and I was informed of the price increase when taking it off hold as well.

Eta: found the email from 11/21/10

Nope, never saw anything like that. Never got any kind of e-mail notice, the account just automatically went off hold on 2/6 and they started mailing movies to me again.

 

[Conservative Hippie]

Yep, we got the notification when we logged into our account sometime around Thanksgiving or so. We decided to switch from 3 DVD's to 2.

 

[mkel34]

I would expect this to be first of many changes with netflix in the near future. Their pending agreement with the Starz catalog was expected to increase from 30 million annually to 250 million. Netflix is also getting pressure from HBO about cheap access to the HBO catalog, which is probably resulting from major cable companies pressuring HBO. Also, I believe the nbc-comcast merger agreement will also have an affect on the price in the future, even though the courts said they would not be able to.

 

[MIGrandma]

I would expect this to be first of many changes with netflix in the near future. Their pending agreement with the Starz catalog was expected to increase from 30 million annually to 250 million. Netflix is also getting pressure from HBO about cheap access to the HBO catalog, which is probably resulting from major cable companies pressuring HBO. Also, I believe the nbc-comcast merger agreement will also have an affect on the price in the future, even though the courts said they would not be able to.

I hope they don't make rate increases very often. Actually, they decreased my rate once. That just never happens with companies, so I was really surprised when it happened. I'm not sure how much is "too much" for their service though. I know that through our DirecTV most movies are $4.99. To us, that is too much for one movie so we never get them that way. But is $30/month too much? $40? I don't know....

 

[LuvOrlando]

I just complained to them last week because my DVD turn around has slowed down so much lately. I still get them in the normal time-frame (from when they post a DVD has been sent to finding it in my mailbox still takes 1 day) but the time it takes from me sending it then them logging it & putting a new one in the mail is longer by 1-2 days. Add the decline in service to higher costs and Blockbuster might still be in the running for my business... and Red Box.

 

[SideshowBob]

I hope they don't make rate increases very often. Actually, they decreased my rate once. That just never happens with companies, so I was really surprised when it happened. I'm not sure how much is "too much" for their service though. I know that through our DirecTV most movies are $4.99. To us, that is too much for one movie so we never get them that way. But is $30/month too much? $40? I don't know....

They dropped when they had real competition in the earlier days of Blockbuster coming into market and trying to steal share from them. Now they are the only real player. The streaming currently is FAR less expensive for them and their long-term goal is to move all in that direction. There was a very good article recently that I'll try to find...

 

[jlewisinsyr]

I just complained to them last week because my DVD turn around has slowed down so much lately. I still get them in the normal time-frame (from when they post a DVD has been sent to finding it in my mailbox still takes 1 day) but the time it takes from me sending it then them logging it & putting a new one in the mail is longer by 1-2 days. Add the decline in service to higher costs and Blockbuster might still be in the running for my business... and Red Box.

How many DVDs on average are you pulling from Netflix? If its more then a dozen on a single DVD plan it could be they are idling shipments. They have been known to idle shipments for a little longer, it's part of their algorithms to manage inventory/costs, although no one knows the precise alogrithm they use, the key drivers are the types of movies (new releases) and number of pulls (how long you keep each movie).

 

[npmommie]

The increase was publicized, you just missed the notification I guess. Sucks does it?

Do you have a wireless internet connection and Wii or other device? If not get one. The streaming is so much fun.

yep we got an email notification. ours went from 8.99 to 9.99 ( just one dvd at a time)

I love the streaming, but I wish there was more to stream, it would be great if everything or close to everything could be streamed

 

[HonnyDipp]

they increased my rate the first of the year. It went from 3 DVD @ $14.99 a month to $19.99 a month. They told me it was a combination of reasons mainly to do with the movie rates and postage rates. I dropped it down to 2 movies at $14.99. I mainly use it for TV seasons anyway.

 

[Ephany]

We've dropped down from 3 dvds a month to 1 + streaming, and we use streaming 90% of the time. Our turn around time is good, but we tend to sit on the dvd; the catalog for streaming has increased noticeably since we started using it and so far it's been well worth the money each month.

 

[osukristin227]

MIGrandma, my account was on hold around that time as well and I never heard anything about the increase either!

 

[ashley0139]

I just complained to them last week because my DVD turn around has slowed down so much lately. I still get them in the normal time-frame (from when they post a DVD has been sent to finding it in my mailbox still takes 1 day) but the time it takes from me sending it then them logging it & putting a new one in the mail is longer by 1-2 days. Add the decline in service to higher costs and Blockbuster might still be in the running for my business... and Red Box.

The type of movie you are receiving from them has an effect on how long it takes for them to send it. If all you request are new releases, it depends on timing for when they will have it to send to you. That might be affecting it

 

[LuvOrlando]

The type of movie you are receiving from them has an effect on how long it takes for them to send it. If all you request are new releases, it depends on timing for when they will have it to send to you. That might be affecting it

That would make sense if it was the case but nope, it has been everything all the time except for the day I called to complain. Maybe they just got too big and can't accommodate the customers as well any longer.

 

[LuvOrlando]

How many DVDs on average are you pulling from Netflix? If its more then a dozen on a single DVD plan it could be they are idling shipments. They have been known to idle shipments for a little longer, it's part of their algorithms to manage inventory/costs, although no one knows the precise alogrithm they use, the key drivers are the types of movies (new releases) and number of pulls (how long you keep each movie).

At the moment I am on 8. I tend to swing my numbers around based on the weather. When its nice out I might drop down to 1 with streaming.

What you are saying makes sense but if it is intentional then they are being foolish because I can get movies elsewhere and said so when I complained. Its never a good idea to irritate customers.