The days of $7.99 Netflix may be over....

Netflix is a very good service for some. But it is an add on, not a substitute for most people. Will that change? I guess time and costs of the internet and services like Netflix will help determine that. But bundling does save money whether people want to believe that or not. I believe for TV shows Amazon, Netflix, Itunes etc.. are going to have to come up with their version of packages if they are to replace traditional carriers.

Netflix already has as many subscribers as any of the traditional carriers. They are steadily growing while the traditional carriers are starting to stagnate and even shrink a little. I'm not saying that Netflix is a going to give you the same experience as Dish. You can't replace an $80 bill with an $8 bill an expect the same type of service. What they are doing is working though. I think they would be crazy to try to replace that with packages and try to emulate the traditional tv providers. If they do that there would be no reason to leave your provider for them. They are offering something different and people obviously like it or they wouldn't have twice as many customers as Dish.
 
http://www.engadget.com/2013/10/21/netflix-q3-40-million-total/

Yes, but Netflix is no startup. They have been offering streaming since 2007 and they have 29.93 million paying US customers. They are over 40 million paying customers internationally.


You have a point there but it still feels pretty young to me. We are just getting to the tipping point of where customers jump ship from the satellite and cable companies and pile on Netflix/Hulu/Amazon. We'll see what happens then. I assume a lot of Netflix members are also cable or satellite user also right now. What will happen when the majority of Netflix users are relying solely on them for TV? Those members are going to start demanding they they carrying more shows and movies. They will want their shows and movies faster. Netflix will have to bite the bullet and make deals with networks and movie corporations to make it happen. This will cost Netflix millions but it will make their customers happier. Now Netflix is incurring major expenses and needs to raise their rates.

I'm not saying this will happen, it's just my idea based on what's happened to companies in the past. It's up to the companies like Netflix to manage their business right, keeping customers happy while still making a profit. Eventually people will tire of Netflix and move onto the new wave of entertainment 15 years from now. Who knows with this crazy business.
 
No he's not, he is a very fair poster.
The problem with your post is comparing those services with a package from DISH. First, to watch what I like it would take all those subscriptions, plus probably others to get the shows since they all have their own exclusives. And then, in many cases would have to pay per episode especially if I want to watch it within a reasonable time of the actual showing. Justified for instance is exclusive to Amazon, past episodes are free with a prime membership. However if you want this season's episodes, it will cost $1.99 each, or I have to wait until season 5 starts. That's approx $20 for one show not including the entrance cost to the service for a season. That is just one example of one show. Seems to add up fast already.

It will cost more than people think if they are trying to watch shows they watch now unless that number is a very few. Not even discussed is the pending increase in internet costs, or the slowing of the speed you may get. Scherrman's posts on this is spot on. Yes of course the carriers keep raising prices, but there actually are ways to cut back without losing much programming. That won't be the case with cloud services that can use no hardware beyond a computer or a Roku.


That is why I said everyone is different in my previous post. I can't cut the cord full time because my wife likes to many shows. It would not be cost efficient. So we keep Dish and enjoy the service. If your into a few shows here and there. You will save a lot of money getting them through Amazon or waiting till their on Netflix.


By the way no one knows if and when ISP's will raise rates. If they do I have 4 companies I can choose from. They will still have their promos. It's the people that don't have very many choices that will pay. I've been hearing for 6 years now TWC will raise my Internet add a cap and slow me down. Sure it may happen but I'm not going to be scared they will. No one knows this.

Netflix is a great option for people that are not addicted to TV. Some people forget that we can all live without TV its not food, electric, gas and water. Some people like to compare those with pay TV like its the same. It's not.
 
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Netflix already has as many subscribers as any of the traditional carriers. They are steadily growing while the traditional carriers are starting to stagnate and even shrink a little. I'm not saying that Netflix is a going to give you the same experience as Dish. You can't replace an $80 bill with an $8 bill an expect the same type of service. What they are doing is working though. I think they would be crazy to try to replace that with packages and try to emulate the traditional tv providers. If they do that there would be no reason to leave your provider for them. They are offering something different and people obviously like it or they wouldn't have twice as many customers as Dish.

Just to be clear I do understand the draw of Netflix, actually more of Amazon. However, I feel your comparison that they are offering something different and that's why they have twice as many customers isn't exactly correct. First, the mere fact it is $8 makes it not in competition with how many subscribers a service that costs far more has. Of course many will spend $8 easily. But that isn't the biggest deficiency in your comparison. How many subscribers does DISH, Direct, TWC, Comcast, Verizon, etc have VS Netflix. It isn't DISH vs Netflix, in fact I bet more have left cable than have left DISH or Direct TV.
When Netflix was going to raise the cost by splitting services remember how many actually dropped Netflix? By comparison they have a limited offering that is very dependent on cost. (Lost almost a Million customers in a very short time then)
 
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Just to be clear I do understand the draw of Netflix, actually more of Amazon. However, I feel your comparison that they are offering something different and that's why they have twice as many customers isn't exactly correct. First, the mere fact it is $8 makes it not in competition with how many subscribers a service that costs far more has. Of course many will spend $8 easily. But that isn't the biggest deficiency in your comparison. How many subscribers does DISH, Direct, TWC, Comcast, Verizon, etc have VS Netflix. It isn't DISH vs Netflix, in fact I bet more have left cable than have left DISH or Direct TV.
When Netflix was going to raise the cost by splitting services remember how many actually dropped Netflix? By comparison they have a limited offering that is very dependent on cost. (Lost almost a Million customers in a very short time then)

Why does Netflix have to single handedly take out the entire industry to stay successful? I think their current business model is working great. I'm not sure why they need to change it to be more like the old providers. The fact that they are different is the reason they are so successful.
 
Investors/stock holders, ruin good companies every time, all they care about is their dividend.
The company starts out with a good product and a sharp team, then the stock market moves in for the kill, with wads of money.
These people force them to shutdown move to china lay off their staff so the dividend can grow for them.
The company becomes unworkable in time, as the owner has lost control and moves out.
Without anyone at the helm that truly understood the product, the company takes a dive. At this point the investors don't care so they strip out whats left and sell off the assets then move on to the next company. Not sure what stage netflix is in, but they are driving down the same road.
I think things would be so much better, if we went back to a time before the stock market.
 
Investors/stock holders, ruin good companies every time, all they care about is their dividend.
The company starts out with a good product and a sharp team, then the stock market moves in for the kill, with wads of money.
These people force them to shutdown move to china lay off their staff so the dividend can grow for them.
The company becomes unworkable in time, as the owner has lost control and moves out.
Without anyone at the helm that truly understood the product, the company takes a dive. At this point the investors don't care so they strip out whats left and sell off the assets then move on to the next company. Not sure what stage netflix is in, but they are driving down the same road.
I think things would be so much better, if we went back to a time before the stock market.
Oh so true...I love your post perkunas..!...Thanks..;).
 
Even without net neutrality discussions, the prince of Netflix would at least want to move up with the price of inflation.
 
I would drop NetFlix if the price goes up due to the fact they still don't carry the shows I watch (last episodes of Breaking Bad S5, Charlie Brooker, Arctic Air). So Torrent is still the way to go, but at least NF is getting there, but not yet.

And I'd have to juggle things when WWE Network comes out and it works great. I'll see if I can support Hulu+, NF and WWE Net. Or only have 2 at once.
 
That is why I said everyone is different in my previous post. I can't cut the cord full time because my wife likes to many shows. It would not be cost efficient. So we keep Dish and enjoy the service. If your into a few shows here and there. You will save a lot of money getting them through Amazon or waiting till their on Netflix.


By the way no one knows if and when ISP's will raise rates. If they do I have 4 companies I can choose from. They will still have their promos. It's the people that don't have very many choices that will pay. I've been hearing for 6 years now TWC will raise my Internet add a cap and slow me down. Sure it may happen but I'm not going to be scared they will. No one knows this.

Netflix is a great option for people that are not addicted to TV. Some people forget that we can all live without TV its not food, electric, gas and water. Some people like to compare those with pay TV like its the same. It's not.

Great for you but what about the majority of Sat customers (not Sat Guys) like me who live in the sticks. Here I have 3 choices for ISP and 2 of them are Hughes Net and Dish Net. The other is DSL at 3 MB download. We tried to stream a HD movie from blockbuster the other day and it was going to take 12 Hours!!!!! These services are ok for people with great ISP choices, but not the rural Sat customers. And these are usually the same people that suffer with unreliable OTA due to distance from the city. I don't think streaming is the answer in the long term that many think, unless you are willing to dramatically taylor your viewing to it. Satellite is expensive, but we get to watch network shows and many cable shows in HD instantly with no waits. We would explore lowering our package and maybe reducing our equipment before streaming would be a viable option for us.
 
Great for you but what about the majority of Sat customers (not Sat Guys) like me who live in the sticks. Here I have 3 choices for ISP and 2 of them are Hughes Net and Dish Net. The other is DSL at 3 MB download. We tried to stream a HD movie from blockbuster the other day and it was going to take 12 Hours!!!!! These services are ok for people with great ISP choices, but not the rural Sat customers. And these are usually the same people that suffer with unreliable OTA due to distance from the city. I don't think streaming is the answer in the long term that many think, unless you are willing to dramatically taylor your viewing to it. Satellite is expensive, but we get to watch network shows and many cable shows in HD instantly with no waits. We would explore lowering our package and maybe reducing our equipment before streaming would be a viable option for us.

Streaming can't work for everyone whether it be because internet availability or viewing choices. What percentage of people live in the sticks like you though? Most Americans can get non-satellite ISPs that are faster than 3Mb. I don't believe that TV will move to streaming based services any time soon for most people but I also don't think big TV companies will structure their whole business around people who live in the sticks. That's like saying smartphones will never catch on because some places don't have cellular service.
 
Great for you but what about the majority of Sat customers (not Sat Guys) like me who live in the sticks. Here I have 3 choices for ISP and 2 of them are Hughes Net and Dish Net. The other is DSL at 3 MB download. We tried to stream a HD movie from blockbuster the other day and it was going to take 12 Hours!!!!! These services are ok for people with great ISP choices, but not the rural Sat customers. And these are usually the same people that suffer with unreliable OTA due to distance from the city. I don't think streaming is the answer in the long term that many think, unless you are willing to dramatically taylor your viewing to it. Satellite is expensive, but we get to watch network shows and many cable shows in HD instantly with no waits. We would explore lowering our package and maybe reducing our equipment before streaming would be a viable option for us.


Hello Sir. I wasn't trying to imply that everyone should do it. If that's how it looks sorry about that. As of right now I'm with you. Satellite is way more convenient. I feel like as long as we can afford it we will stay with the pay TV model. I just feel like with all the programming increases and fee increases year after year it will be to much pretty soon. So I would consider trying it. We will be pausing service over the summer to save a few hundred.

I feel for you sir only having a few providers. My grandfather in West by God Virginia is in the same boat. He has to have satellite service for TV and Internet. He does OK with just a basic package that has sports and one DVR. I tried to get him to move a little closer but he likes being in the sticks. Hang in there man maybe you will get a few more providers soon.
 
Great for you but what about the majority of Sat customers (not Sat Guys) like me who live in the sticks. Here I have 3 choices for ISP and 2 of them are Hughes Net and Dish Net. The other is DSL at 3 MB download. We tried to stream a HD movie from blockbuster the other day and it was going to take 12 Hours!!!!! These services are ok for people with great ISP choices, but not the rural Sat customers. And these are usually the same people that suffer with unreliable OTA due to distance from the city. I don't think streaming is the answer in the long term that many think, unless you are willing to dramatically taylor your viewing to it. Satellite is expensive, but we get to watch network shows and many cable shows in HD instantly with no waits. We would explore lowering our package and maybe reducing our equipment before streaming would be a viable option for us.

Netflix and amazon worked fine for us when we had 3Mb dsl.Also for our daughter.Sounds like your isp isn't providing full 3Mb service.
 
I must say when I had ATT DSL I was able to stream reasonably well as long as that was the only thing using the Internet at the time. But not HD.
 
Streaming can't work for everyone whether it be because internet availability or viewing choices. What percentage of people live in the sticks like you though? Most Americans can get non-satellite ISPs that are faster than 3Mb. I don't believe that TV will move to streaming based services any time soon for most people but I also don't think big TV companies will structure their whole business around people who live in the sticks. That's like saying smartphones will never catch on because some places don't have cellular service.

I realize that companies can't structure to the minority, but it is sometimes frustrating listening to all the suggestions for all these options that just aren't going to be viable for the rural dweller. Not your fault of course. With so much talk of people wanting to leave satellite to stream to save money, I wonder how long it will be before the few of us out in the woods will be trying to keep the satellite industry running by ourselves. I also think ISPs and content owners will eventually catch up and will not allow the golden goose to die that easily. Once they get enough people using it, the price will be going up dramatically.

Hello Sir. I wasn't trying to imply that everyone should do it. If that's how it looks sorry about that. As of right now I'm with you. Satellite is way more convenient. I feel like as long as we can afford it we will stay with the pay TV model. I just feel like with all the programming increases and fee increases year after year it will be to much pretty soon. So I would consider trying it. We will be pausing service over the summer to save a few hundred.

I feel for you sir only having a few providers. My grandfather in West by God Virginia is in the same boat. He has to have satellite service for TV and Internet. He does OK with just a basic package that has sports and one DVR. I tried to get him to move a little closer but he likes being in the sticks. Hang in there man maybe you will get a few more providers soon.

That's fair.

I must say when I had ATT DSL I was able to stream reasonably well as long as that was the only thing using the Internet at the time. But not HD.


If not HD then no good for me I'll stick with my expensive satellite. Thanks though. DSL has been a struggle, but it beats Sat internet and of course dial up.
 
Netflix, Hulu + and Amazon Prime could all double in price and their combined cost would still be cheaper than most cable/sat packages. And I hope you're not assuming that cable/sat packages won't go up in price either.

Now you're not making your comments because you're a Dish dealer now, are you? :rolleyes:

Except you have to remember that NONE of these have the CURRENT programming that you would get on Cable or Sat.
 
I think the increase in subscribers should pay the cost for expansion if the price were to stay the same. They may not want to jeopardize the customer growth by raising prices but as a cost of gaining those customers. When customer growth slows I could then possibly see a greater chance for a price increase to increase revenues. I believe $9.99 could easily be achieved without much customer loss and still have some great gains even if they raised the price today with a raise in price by a buck or two every year or two, on par with what satellite radio is doing with their prices.
 
My wife made a comment to me that she read about Amazon Prime's price possibly being raised by as much as $40 a year. I wouldn't be surprised.
 
This doesn't surprise me at all and I've been saying it for over a year now. As these people who think they have it all figured out by cutting the cord and watching their shows online are going to see some price increases. Eventually it won't be as great of deal as everyone thinks.

It's still going to be less $$ per month than the least expensive Dish package.
 
Its 8.53 a month for Netflix here in Ohio as the state started charging sales tax on January 1st for watching videos online

Ohio is where I grew up. Gotta love their eagerness to tax, and it's a foaming-at-the-mouth Republican state, too! Wasn't Ohio one of the first to have a satellite tax? I don't miss anything about Ohio except square-cut pizza (Donato's/Cassano's anyone?!) :popcorn
 

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