- Oct 17, 2011
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Considering that they've been charging people in the US the same amount per month ($7.99) since it was first available back in 2010, and that it's a measly extra $2/month increase, I'd say it's very reasonable. When was the last time you went 4 years without the cable/phone company increasing your monthly rate...or the last time your natural gas/fuel oil/electricity provider went 4 years without increasing the rate they charged? Heck, when was the last time you saw gasoline prices stay the same for even 4 days, let alone 4 years... or the last time that you saw movie cinemas go for 4 years without increasing their ticket prices?
And horse*******...sorry, but you need to check your math. You're assuming that Netflix not only switches from a price increase every 4 years to an increase every year (which, while perhaps "usual" for the cable/satellite providers, has not been shown to apply for Netflix yet), but switches from a flat $2 rate increase to a 25% increase in the existing rate (again, since this is their first price increase, it's nothing more than a personal opinion of yours that they would go that route). And even then, that only gets you to a monthly cost of $29.99...which is usually either a) a very limited selection of channels, or b) an "introductory" rate that they'll apply for 6-12 months, but only if you sign a 24-month contract (including early termination fees) with the provider (usual monthly costs for "full" channel selection, excluding premium channels, tends to run about $50-60/month from the providers). Netlflix neither restricts channel selection based on your plan selection (just the number of devices that can simultaneously connect) nor locks you into a contract (you're free to cancel at any time during the billing cycle). Furthermore, assuming they even come up with a "schedule" of rate increases, it could range from anywhere from 10 years (rate increase of $2/month every year starting next year) to 24 years (rate increase of 25% of existing monthly charge every 4 years) to even 40 years (rate increase of $2/month every 4 years)...& that's just to get to the "introductory" level; getting to even a $40/month charge will take a lot longer (7-16 years worst-case, 29-64 years best-case). And again, during that time you can bet that the cable/satellite providers will be increasing their monthly charges, which just adds on to the 100% hypothetical timeframe needed for Netflix to become just as expensive.
And horse*******...sorry, but you need to check your math. You're assuming that Netflix not only switches from a price increase every 4 years to an increase every year (which, while perhaps "usual" for the cable/satellite providers, has not been shown to apply for Netflix yet), but switches from a flat $2 rate increase to a 25% increase in the existing rate (again, since this is their first price increase, it's nothing more than a personal opinion of yours that they would go that route). And even then, that only gets you to a monthly cost of $29.99...which is usually either a) a very limited selection of channels, or b) an "introductory" rate that they'll apply for 6-12 months, but only if you sign a 24-month contract (including early termination fees) with the provider (usual monthly costs for "full" channel selection, excluding premium channels, tends to run about $50-60/month from the providers). Netlflix neither restricts channel selection based on your plan selection (just the number of devices that can simultaneously connect) nor locks you into a contract (you're free to cancel at any time during the billing cycle). Furthermore, assuming they even come up with a "schedule" of rate increases, it could range from anywhere from 10 years (rate increase of $2/month every year starting next year) to 24 years (rate increase of 25% of existing monthly charge every 4 years) to even 40 years (rate increase of $2/month every 4 years)...& that's just to get to the "introductory" level; getting to even a $40/month charge will take a lot longer (7-16 years worst-case, 29-64 years best-case). And again, during that time you can bet that the cable/satellite providers will be increasing their monthly charges, which just adds on to the 100% hypothetical timeframe needed for Netflix to become just as expensive.
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