Thursday, August 11, 2011

Why Netflix increased rates

Some people cancelled their service with Netflix when they increased th rates but let's be honest, it was a bargain at the price it was with 1 dvd out at a time plus unlimited streaming.

Here's this bit from an NPR story:
The bottom line is money. Studios have been willing to deal with Netflix because it's so popular. But Netflix is getting more competitors in the world of streaming video from services like Hulu, Amazon, iTunes and YouTube.

"All the content owners are going to figure out that they can get a lot more money out of Netflix if they just hold their breath and negotiate a little tougher," Pachter says.

Recently, Netflix upset a lot of its own customers when it raised its rates 60 percent for users who want both its streaming and mail order services. Some customers even canceled their subscriptions.

And no matter how hard Netflix negotiates, there is some programming they aren't likely to ever get.

Take HBO — the company wants to keep people paying for its cable channel. And Pachter thinks HBO sees Netflix as a huge threat.

"What they fear the most is that people who have Netflix will say, 'We have enough and it's good enough,' and they'll cut off HBO."

Tom Corwin and Marlene Saritzky haven't cut off cable and HBO because they do want certain shows that they can't get on Netflix.
The only way I was able to watch shows like Eastbound and Down or Bored to Death are via Netflix DVDs. The same goes for the miniseries movies produced by Tom Hanks and Steven Spielberg--which I will watch when I get to them.

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