There's simply no other choice when it comes to quality content that's conveniently streamed. Netflix is banking on the quality of their service to win back customers after its recent price hikes.
Why Netflix had to raise prices.
- $1 million paid for each new "Mad Men" episode.
- New licensing deals with Miramax, Revolution Studios, Viacom and NBC Universal. This continues to be where the majority of new costs come from.
In reality, the previous $7.99 deal for streaming was probably priced too low. Most consumers don't want to hear that and want to feel rightfully enraged, but the truth is that these contracts are a huge cost for Netflix.
Why consumers will come back to Neflix.
The exodus of Netflix subscribers was overstated by the media, but it is still a sizeable chunk of people. Netflix is estimated to be losing roughly 15% of its customer base (about 2.5 million people). Netflix has plans for winning some of these people back, and many will simply come back for one simple reason: Netflix has the most content and plays on the most devices. Since Netflix is a well entrenched and recognized brand, they will also have no problem garnering new subscribers to their service.
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Comments: 7
As for what they paid for Madmen as well as the Movie Studio Contracts, they have made that money trifold (and more) from subscribers that they are jack prices up on and offering nothing new to in return for the increase. I will keep my service through september when the new cost hit my account but after that I can go to my local block busters and rent movies more often and with no wait time for delivery but joining their program. As for TV shows, you can find many of them at Blockbusters too and what you cant find there you can online in a myriad of places. at least in my opinion anyway,
These days most marriages end in divorce ;-)
That show is not that good ... particularly on a per episode basis. Maybe that first episode, but at this point Mad Men is turning into a soap opera with the point of just keeping going for no real reason.
It's really odd though that there are so many movies on disk that you cannot get on streaming. The old stuff fades out more and more, and the new stuff is not very good.
I believe that eventually I will have seen most of what i want to see on NetFlix, and they will raise the prices so I am pushed to quit, but not yet, not at this point.
As long as there is money to suck from suckers willing to pay it they will continue. Movies where all the original participants are long since dead are still being charged for at rates that seem very high to me. Then there are a lot of old movies that are really good classics that are just missing.
I have to say there are not many movies worth watching, or that demand much money. I think all movies should be put in a large central online database and the cost should be socialized across everyone as fair as possible so any person can see any movie they want for a subscription price.