Netflix Launches U.S.Plan for Streaming Movies & TV Shows Over the Internet

[TheForce]

This is a clever pricing plan- Netflix stock popped this morning,... again!

Netflix Launches U.S. Subscription Plan for Streaming Movies & TV Shows Over the Internet for $7.99 a Month
8:30a ET November 22, 2010 (PR NewsWire)

With its members now watching more content streamed over the Internet than on discs delivered by mail, Netflix, Inc. (Nasdaq: NFLX) today introduced a $7.99 streaming-only subscription plan in the United States, the first time it is promoting a 100 percent streaming option in the U.S. The plan, which allows members to instantly watch unlimited movies and TV episodes streamed from Netflix to TVs and computers, is available now to both new and existing members.

"We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet," said Reed Hastings, Netflix co-founder and CEO. "Today's action reflects the tremendous customer value we've injected into streaming from Netflix, our initial success with a pure streaming service in Canada for $7.99 a month and what our U.S. members tell us they want."

The company also announced that the price of its popular subscription combining unlimited movies and TV shows streamed instantly over the Internet and unlimited DVDs delivered quickly by mail, with one DVD out at a time, will increase by a dollar a month to $9.99. Prices of subscription plans allowing for more DVDs out at a time will also increase and are detailed at http://blog.netflix.com. Price changes take effect now for new sign-ups and in January for existing members.

Instantly watching movies and TV shows streamed over the Internet has become the preferred way members enjoy the Netflix service. The company recently announced that in the current quarter, which ends December 31, its members will watch more content streamed over the Internet than on DVDs and that in the same period Netflix will invest more money to license streaming content than to acquire DVDs.

Netflix members in the U.S. now have access to an ever expanding library of movies and TV episodes that can be watched instantly, and there are more than 200 consumer electronics devices - including the three major game consoles and scores of Blu-ray disc players, Internet-connected TVs and digital video players - capable of streaming from Netflix right to members' TVs.

Over time, Netflix has added significantly to the streaming content available to its members. This year alone, licensing deals with NBC Universal, Warner Bros., 20th Century Fox, EPITM), Relativity Media and Nu Image/Millennium Films have added a wealth of first-run theatrical films, hit TV series and movie classics to the Netflix streaming offering and have helped make streaming the most popular way to enjoy a Netflix membership.

In late September, the company introduced its service in Canada, the first availability of Netflix outside the U.S. Canadian members can instantly watch unlimited movies and TV shows streamed from Netflix for C$7.99 a month. The company recently said its Canadian service has surpassed initial expectations and encouraged it to accelerate plans for further international expansion in 2011.

 

[n0qcu]

I see they are also raising the prices on all other subscriptions.

 

[Ronnie-]

Hmm, might make me go to the online only plan. I rarely get discs, and those that I do get are available on Vudu same day, and instant.

 

[JAG72]

I am now even happier that I canceled Netflix last week.

 

[TheKrell]

I have 30M down, but I haven't seen acceptable quality on streaming Netflix yet. The SD is blurry, while the HD macroblocks (inadequate color depth?) on my LG networked BR player. Is anybody happy with their HD streams on someting other than a Roku? I built a HTPC on Windows 7 for it's free Media Center, and that has it's own Netflix client. But neither that, nor the browser-based player, work with HD streams the last time I checked.

 

[Ronnie-]

I only have 6m down with DSL, and am more or less pleased with the PQ through the ps3 or xbox.

 

[toto]

I have 18MPS (Uverse) down and have excellent streaming from Netflix. It is running through a PS3. I'm not sure the issue isn't with the size of buffers in TVs and Blue Ray players. I'm the last thing from a computer geek, you will find. For what it's worth that is my WAG

 

[yaz96]

Hmm, might make me go to the online only plan. I rarely get discs, and those that I do get are available on Vudu same day, and instant.

But how much is EACH of those movies on Vudu, compared to monthly cost of Netflix?

 

[Ronnie-]

But how much is EACH of those movies on Vudu, compared to monthly cost of Netflix?

About 4-5 bucks. If you rented alot of movies that way, yes it would be much cheaper just to keep netflix disc service.
However, disc before last I kept for 2 months after watching it, and sent it back in for Iron Man 2. I have had it since release date, so I will probably come out ahead based on my personal viewing habits.

Even with Disc service, we have found ourselves using Vudu to watch when we suddenly decide, hey lets have a movie night.

 

[Tyralak]

I use my 360 and my iPhone for Netflix streaming. The PQ is great. Especially the HD streams. I have a 20 Mbps down Comcast connection. Like msmith, I hardly use the disc service. I might switch to the streaming only, but we're literally talking $2. I'll probably just keep it in case there's a movie that I want to see that's not on streaming.

 

[Ronnie-]

2 bucks here, 2 bucks there....lol.

It all adds up. I may or may not drop down, but even a little savings for something I use little is a good choice IMO.

Of course if it is something that someone uses alot, it is still a good deal.

 

[riffjim4069]

Hmm, might make me go to the online only plan. I rarely get discs, and those that I do get are available on Vudu same day, and instant.

We love Netflix, but their online selection is piss-poor...I really though it would be much better by now.

 

[Ronnie-]

We love Netflix, but their online selection is piss-poor...I really though it would be much better by now.

I use it mainly to watch shows that I have never seen before. It has been great on catching up on entire series, or seasons that were missed. Right now I am watching the entire stargate run of shows. Had never seen them, now I get to watch all SG1 through Universe with no commercials. Lost is next, with the first few seasons of 24 to follow....I missed the first couple, and my wife only saw the last two.

As far as movies go, I have watched very few.

 

[mike123abc]

The online problem is of course the rights holders. The studios did not think of online distribution way back when making movies, so they did not necessarily get the correct copyright clearances to cover online distribution. They had a similar problem when they started VHS and DVD distribution. There are a lot of copyrights involved in a movie, and it takes every single one of them to say OK before they can allow online distribution.

 

[TheForce]

More problems may be on the horizon for those of us who are now taking advantage of low movie viewing cost via Netflix downloads.

Comcast in dispute over Netflix downloads
3:34p ET November 30, 2010 (MarketWatch)

WASHINGTON (MarketWatch) -- Comcast Corp. is coming under scrutiny from regulators after it demanded higher fees to carry streaming Netflix videos over its cable network.

Julius Genachowski, chairman of the Federal Communications Commission, said Tuesday he will seek more information about a dispute involving Comcast and Level 3 Communications Inc., the company that distributes Netflix videos over the Internet.

For now, the dispute is unlikely to affect Netflix customers. Level 3 has agreed to pay higher fees to Comcast while it takes it complaint to regulators.

Comcast has demanded that Level 3 pay a regular fee because of the number of Netflix videos downloaded over the cable network has soared. Level 3 is now sending far more Internet traffic over Comcast's network than Comcast sends over Level 3's network, the cable company said.

Level 3, for its part, has complained that Comcast is setting up a "toll booth" on the Internet to disadvantage its competitors and extract more money from them. Such an approach violates F.C.C .guidelines on "net neutrality" that are mean to ensure fair treatment of all Internet traffic, Level 3 argues.

The dispute has flared up at an awkward time for Comcast, also the nation's largest Internet operator with nearly 17 million customers. Regulators are in the late stages of a review of Comcast's proposed purchase of the NBC television network.

The F.C.C. any day now is also expected to announce new rules meant to promote net neutrality -- rules that could affect Comcast, AT&T Inc. and Verizon Communications Inc. in a dramatic way.

Currency F.C.C. guidelines prohibit network operators from discriminating against other Internet companies by blocking or slowing down access to their websites. Yet a federal court ruling earlier this year in another case involving Comcast undercut the agency's authority and spurred the F.C.C. to pursue stronger measures.

Comcast insists it hasn't violated neutrality principles, saying it's not fair for Level 3 to send more traffic over its cable network without paying for it. Typically network operators exchange traffic for free when similar amounts flow in each direction.

Joe Waz, Comcast's public-policy counsel, said Level 3 itself has insisted on higher fees from other network operators when they send more traffic its way.

"Level 3's position is simply duplicitous," he wrote.

Earlier this month, Level 3 signed an agreement to house Netflix's huge video library. When a Netflix customer who subscribes to Comcast Internet service downloads a video, it's pulled from Level 3 servers.

The result is more traffic and further strain on Comcast's Internet network. The cable company said Level 3 -- and indirectly Netflix --- should bear some of the cost. Netflix eventually plans to distribute all its videos over the Internet.

"They don't want to pay the same costs as their competitors," said Sena Fitzmaurice, a senior Comcast executive involved in regulatory issues. She said Comcast is sending the F.C.C. information to explain its decision.

If the F.C.C. declines to get involved, Netflix could be forced to raise the fees it charges video customers to download movies.

http://finance.yahoo.com/video/cnbc-22844419/video-battle-brewing-23270707#video=23270707

 

[mike123abc]

This is where the government should be involved. There should not be a fee to deliver any internet traffic that ends on Comcast's network. It is traffic that was requested by Comcast end users. It is not like Comcast is getting L3 traffic and being forced to route it over their network and send it to some other network (like Time Warner Customers), I could see a fee in that case.

If L3 wants local caching servers installed in Comcast's data centers, ok there could be a fee associated with that. It should be the ISP's responsibility to deliver content to the end users as requested by the end users without regard as to where the traffic originates. If the end user is requesting too much data or something, that is between the ISP and the end user, not L3.

 

[TheForce]

mike- agreed!

I fear that if this persists, we may be getting charged more than once for the same thing. Once by Netflix and another from Comcast for excessive usage.

 

[concord]

Net neutrality sound good on the surface, but note if the FCC should vote for it, be prepared for ISPs to switch to per MB fees from "pipe size" flat rates. AT&T and TW had trials and lost customers over it, but if the FCC passes it, it will give all ISPs a reason to switch.

For those that just read news and email, it may be great...but not for streamers.

 

[TheForce]

I have no problem paying for what I use as long as the cost is reasonable. I don't expect simple e-mail and light web surfers to pay for my constant video streaming.

 

[TheForce]

Netflix is on a real roller coaster ride lately. The stock peaked so I sold all mine last week and smiled at the profits. Little did I know the CFO sold a bunch of his stock too and today, resigned his position. Seeking other executive opportunity he said. The stock tumbled again in the after hours market today. Just growing pains or is there trouble for the new streaming business model on the horizon? Time Warner claims the streaming model will fail because it is not a good plan for the programmers.

What all this means is maybe in 2011 we will be in for some disappointments in IPTV. Cable and satellite aren't dead yet.