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Monday, November 22, 2010

The Netflix Nix

The Blockbuster Video Killers Jack Up Their Prices


A bit of upsetting news was announced today by the notorious, red logo company that single handedly slayed the media giant once known as Blockbuster. Netflix says it is increasing subscription fees by $1 in response to the growing demand of online streaming. A subscription that allows customers to rent out one DVD at a time and stream unlimited content from the internet will now run about $9.99 a month instead of $8.99. Current Netflix customers won't see the increase until January, while new customers will penny up the new cost immediately. Other packages are available for those who fear sunlight and don't wish to walk out of their homes to pick up DVD's from the mailbox, as customers can sign up for an internet streaming only monthly deal, which will go for about $7.99. Announcements like this aren't new. Big name companies jacking up their rates is the way the capitalism game is played, but I have a minor gripe with Netflix's logic in the decision.

We know who won this bout

According to Netflix, the company is catering to it's slow, blob-like growing online streaming market. The popularity of streaming content online has skyrocketed over the past couple years, considering anyone with a Netflix account can stream movies and TV shows through their computer, DVD/Blu-Ray players, TV's, XBOX, PS3, Nintendo Wii, and most recently the I-phone. While it sounds logical to increase their prices, I have to point out the obvious key point to the price increase...HOW WILL THEY MAKE IT BETTER?!?! For anyone who's scrolled through Netflix's online library, at least 60-70% of what you find is garbage. I'm sure someone out in the cornfields of Nebraska would love to pay an extra $1 a month to see glorious titles like "Mega Shark vs. Giant Octopus" or "Paranormal Entity," (not activity) -- but not me. If Netflix wants to justify this price increase, they need to expand or refine their online service.

One of the big problems that comes with the online service is the control, or lack thereof, customers have. Customers can browse movies, set up a queue and all the jazz, but we still can't control things like audio/subtitle tracks, or check out things like commentaries or behind the scenes footage that comes standard with many DVD's. I can't tell you how grateful I am to have subtitles whenever I watch a film that was shot overseas. You try watching a great film like "Lock, Stock and Two Smoking Barrels" the first time without subtitles ya wankers! Not only that, movie nerds like myself love to listen to commentary tracks. I thrive on learning everything that went into making a particular film/show that I thoroughly enjoyed. Plus, many Asian film lovers enjoy watching their movies with the Japanese audio track. I personally don't, but the market is still there.

This is Oscar gold compared to some films on Netflix online

Besides the lack of technical control, many movies/tv shows on Netflix streaming market are obscure. Over the past couple months, I have noticed an increase in A-List Hollywood titles, but the ratio is still not in our favor. For every solid movie you find, you'll also come across 5 other campy films that not even SyFy channel would air at 3 in the afternoon. Plus, the justification of a growing online market contradicts the recent deal Netflix made with several Hollywood studios to release DVD's to subscribers 30 days later in exchange for more copies. How do you justify a price increase when you're not adding anything new to the online market, and you're making even more money through your DVDs?

DVD's, a bane to many capitalists
Just to be clear, I'm not complaining about online streaming. It's convenient, easy to use, and you avoid the clutter that comes with opening the DVD packaging slip. I, like so many others in this shaky economy, want to make sure we're getting what we're paying for. Maybe some new improvements are in fact coming to Netflix online market, but right now they're evidently not there. It's almost like going to the supermarket, and being told you have to pay more for bananas because people really like them, even though there's no shortage of them. I understand it's just business, but at least give me a better tasting banana if you're going to charge me extra for it.

1 comment:

  1. Mega Shark vs. Giant Octopus is mega win.

    Btw, within 5 years as netflix feels safe from its competitors they will raise prices to $14.99 or something in that range. Inflation and regulatory barriers to entry will make sure that happens and the whole time quality of their services will fall.

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