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I'm doing what they want...getting rid of the DVD service so my price will actually drop. Picture quality on streaming is often better than a DVD can deliver, and the sound is just as good (yes, saw the comment below. My milage varies from his). I always have a maximum quality signal and it's very good indeed, more than adequate for my interests. My wife and I are at about episode 30 or so of "The Tudors." Lots of historical license, but the acting, music, costumes, and locations are totally awesome and we can watch as much as we want, when we want. Especially satisfying during the summer TV drought season.

DVDs are a relic of the past, streaming is the future. Most of my life I've wished that someday TV would be all on demand. Netflix and friends still have a way to go, but that's where it is headed.

I'll be interested to see if they figure out a model to try original series. It will be a new model. Perhaps the first X installments are "free" in the regular plan but at a certain point you have to pay a dollar or so to see one. If free installments don't forecast a viable revenue stream they just wrap it and cancel. If it does, they charge.

Don't take that as a serious model, just a thought. I am sure there is a way to have "network style" series available on demand and someone will figure it out.

I've downgraded my cable to about a third of what I was paying as my wife and I find Netflix more appealing, as well as being on demand.

Yep, plenty of flaws, but price isn't one of them compared to the alternatives.

Dave

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just a little food for thought: http://www.fastcompany.com/1767124/dear-netflix-subscribers-stop-whining

Consumers are reacting to price increases on Netflix the same way Tea
Partiers are likely to react if the government raises the debt ceiling.
Hysteria over the new subscription plans is off the charts--news
outlets have juiced up the story by highlighting the outrage of subscribers and referring to Netflix CEO Reed Hastings as Greed
Hastings. (Clever.) On social media, the tone is of course
overwhelmingly negative; droves and droves of people have taken to
Facebook and Twitter to complain.



Two words of advice: Calm. Down. (Better yet: Stop. Whining.) Changes to
Netflix's prices were inevitable, and frankly, not very painful.



Let's start by explaining the changes.
Netflix plans start at $7.99 for streaming-only subscriptions, meaning
customers will only have access to content online; for only $2 more,
members could also have access to DVDs by mail, one out at a time. Soon,
these two services (streaming and by-mail) will no longer be bundled
together for $9.99. Instead, customers can either purchase a
streaming-only plan for $7.99 (the same as before), or a DVD-by-mail
plan starting at $7.99 (technically cheaper than before). If you'd like
to have access to both services, it will cost you roughly $16--a 60% price hike from the original price, as many have pointed out.



That 60% leap in price only amounts to a $6 increase per month. That's
about the same cost as a Starbucks Frappuccino these days. Over the
course of the year, that number certainly adds up--to about $190
annually up from $120--but it's still a remarkable value.


If the price tag has become too expensive for those accustomed to paying
$9.99, well, feel free to pay less. It costs just $7.99 for either a
streaming-only plan or a DVD-by-mail plan. If you want both, you have to
pay for it--you can't have your cake and eat it too, in other words.



The truth is it's not Netflix that's being greedy but Netflix's
customers. For the original price of $9.99, subscribers had access to
streaming for just $7.99 and unlimited DVDs for only $2 per month.
That's not sustainable; it's estimated that Netflix spends about $1 roundtrip per DVD
mailed. At the same time, customers continuously demand fresher
content, and fresher content costs money. Netflix has aggressively inked
deals, including with Epix and Relativity Media, and in order to
sustain costs of content, Netflix must charge its customers more.



netflix-crimson-hex-data.jpg


According to data by Crimson Hexagon, the social media analytics firm,
an estimated 62% of commentary on Twitter was negative. I'm surprised it
wasn't higher; after all, who reacts positively to price increases for
anything? (Well, 23% did, according to Crimson's data, while 15% were
neutral on word of the news.)



Roughly 11% of Twitter-ers indicated they would leave Netflix, while 20%
said they'd leave Netflix for Redbox. Sure, Redbox is another
option--but then you're getting neither DVDs by mail nor online
streaming--and nothing for low subscription rates. Other options? Switch
to Amazon, where you'll gain access to online content for $79 annually,
roughly $15 less than Netflix's streaming plan. (However, Amazon does
not provide nearly as much online content as Netflix, but no doubt
you'll enjoy the benefits of two-day shipping for your Amazon Prime
membership, if that's what you value.) How about Apple? Certainly that's
a possibility, if you enjoy paying for content on an à la Carte basis.
And of course, don't forget about Blockbuster, which smartly capitalized
on the hoopla by offering free 30-day trials to consumers who can offer proof of a Netflix account.



(The other option is to not use any of these services, obviously, and go back to good ol' cable.)



My prediction? The negativity will die down, the snark will fade, and
consumers will realize Netflix is still a great value, even at a higher
monthly price.

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I'm doing what they want...getting rid of the DVD service so my price will actually drop. Picture quality on streaming is often better than a DVD can deliver, and the sound is just as good (yes, saw the comment below. My milage varies from his). I always have a maximum quality signal and it's very good indeed, more than adequate for my interests. My wife and I are at about episode 30 or so of "The Tudors." Lots of historical license, but the acting, music, costumes, and locations are totally awesome and we can watch as much as we want, when we want. Especially satisfying during the summer TV drought season.

DVDs are a relic of the past, streaming is the future. Most of my life I've wished that someday TV would be all on demand. Netflix and friends still have a way to go, but that's where it is headed.

I'll be interested to see if they figure out a model to try original series. It will be a new model. Perhaps the first X installments are "free" in the regular plan but at a certain point you have to pay a dollar or so to see one. If free installments don't forecast a viable revenue stream they just wrap it and cancel. If it does, they charge.

Don't take that as a serious model, just a thought. I am sure there is a way to have "network style" series available on demand and someone will figure it out.

I've downgraded my cable to about a third of what I was paying as my wife and I find Netflix more appealing, as well as being on demand.

Yep, plenty of flaws, but price isn't one of them compared to the alternatives.

Dave

Your right ... Dvd's are a thing of the past. BD's are the here and now. Streaming is worthless until they get 1080p and dts-hd sound. Worthless.

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Agreed Mallette, streaming is the wave of the future. Rumour has it that the infrastructure has already been started, so it's just a matter of time until there's enough in place to turn it on.

It'll be interesting to see how Youtube adapts too....I think it's only a matter of time (ad money) until we start seeing more mainstream style "shows" on Youtube. Many already exist, but they're usually more of a garage production style....

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Comcast Shakedown????

Netflix Partner Says Comcast Toll Threatens Online Video Delivery

By BRIAN STELTER

9:45 p.m. | Updated

Level 3 Communications, a central partner in the Netflix online movie service, accused Comcast on Monday of charging a new fee that puts Internet video companies at a competitive disadvantage.

Level 3, which helps to deliver Netflixs streaming movies, said Comcast had effectively erected a tollbooth that threatens the open Internet, and indicated that it would seek government intervention. Comcast quickly denied that the clash had anything to do with network neutrality, instead calling it a simple commercial dispute.

The dispute highlighted the growing importance of Internet video delivery an area that some people say needs to be monitored more closely by regulators. Net neutrality, which posits that Internet traffic should be free of any interference from network operators like Comcast, is thought to be on the December agenda of the Federal Communications Commission.

With this action, Comcast demonstrates the risk of a closed Internet, where a retail broadband Internet access provider decides whether and how their subscribers interact with content, Thomas C. Stortz, the chief legal officer for Level 3, said in a statement Monday.

Those issues cut to the heart of Comcasts imminent acquisition of NBC Universal, which is in the final stages of review by the F.C.C. and the Justice Department. The F.C.C. is considering attaching a condition to the merger that would aim to keep Comcasts Internet network open to competitors, according to public filings this month.

In theory, without government action, Comcast could speed up streams of NBC programs and slow down streams of its rivals programs. This may be one of those teaching moments for consumers to understand whats at stake, said Michael McGuire, a media analyst for Gartner.

There is no known case of Comcast ever slowing the traffic to one of its direct competitors, but it did delay some peer-to-peer file traffic in a much-litigated case several years ago. Comcast says it supports an open Internet but also says that it needs to be able to manage its expensive and still-evolving networks, which are essentially on- and off-ramps to the Internet.

Level 3 in essence operates a highway that connects to those ramps and handles traffic to and from individual Web sites. Comcast customers rely on the companys on- and off-ramps from that highway. With nearly 17 million broadband Internet customers, Comcast is the nations largest such service provider.

The scuffle between the two started on Nov. 19, when Level 3 says Comcast demanded a recurring fee to transmit Internet online movies and other content to Comcasts customers who request such content.

Three days later, under pressure from Comcast, Level 3 agreed to the terms, under protest, in order to ensure customers did not experience any disruptions, Mr. Stortz said.

Mr. Stortz did not cite Netflix in his statement. But just a week before Comcasts demand, Level 3 announced a multiyear deal to support Netflixs rapidly growing streaming service.

A recent study found that at peak times, Netflix represented 20 percent of Internet download traffic in the United States. That makes it a de facto competitor for incumbent distributors like Comcast and Time Warner Cable, which are eager to protect both the subscription television business and the emerging video-on-demand business.

Mr. Stortz implied that Comcast was taking the action to impair companies that compete with its own cable and Internet services.

A spokesman for Netflix declined to comment Monday. Netflix, which announced a new pricing structure last week, is gradually weaning its customers from DVDs by mail in favor of online streaming, making any new costs a serious concern.

Comcast on Monday rebuffed the notion that the new fees were related to Netflix by saying that the type of traffic distributed by Level 3 was irrelevant. Joe Waz, a senior vice president at Comcast, says it has had a peering agreement with Level 3 to swap traffic fairly evenly. Now Level 3 is sharply increasing its traffic, he said, while resisting a commercial agreement to pay for that.

Comcast is already carrying huge amounts of video to our high-speed Internet customers every day through commercial arrangements, and it seems to be working for everybody else, Mr. Waz said. Level 3 is trying to change the rules of the game.

If nothing else, the dispute demonstrates that consumers have little, if any, idea how convoluted it can be to transmit video to a computer or mobile phone.

Nonetheless, on Monday night, public interest groups that have steadfastly opposed the combination of Comcast and NBC Universal argued that the Level 3 case proved that Comcast would discriminate against competitors if it could.

On its face, this is the sort of toll booth between residential subscribers and the content of their choice that a net neutrality rule is supposed to prohibit, said Harold Feld, legal director of one such group, Public Knowledge, in a statement.

Mr. Stortz said Level 3 would be approaching government regulators this week and asking them to take quick action to ensure that a fair, open and innovative Internet does not become a closed network controlled by a few institutions with dominant market power that have the means, motive and opportunity to economically discriminate between favored and disfavored content.

Mr. McGuire, of Gartner, said, There is no law here. There are only guiding principles. F.C.C. clarity on this kind of thing is going to be required.

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It'll be interesting to see how Youtube adapts too....I think it's only a matter of time (ad money) until we start seeing more mainstream style "shows" on Youtube. Many already exist, but they're usually more of a garage production style....


You mean like Gorgeous Tiny Chicken Machine Show? "Prease for you to crap hands and cheering for our special guest, Mister Lick Poop!"

Episode 1:


Kiko, the host, had a variety of interesting guests, including Will Wheaton and Ron Jeremy.

The episodes are mostly around four minutes long.
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Agreed Mallette, streaming is the wave of the future. Rumour has it that the infrastructure has already been started, so it's just a matter of time until there's enough in place to turn it on.

It'll be interesting to see how Youtube adapts too....I think it's only a matter of time (ad money) until we start seeing more mainstream style "shows" on Youtube. Many already exist, but they're usually more of a garage production style....

Evolution of the whole thing is fascinating, Mike. Hard to believe I've seen so much, remembering the local TV station opening it's delivery doors one day to show a live picture of the nearby street for the first time.

The current system is running on momentum, and it's about expended. Only bandwidth remains as an obstacle to a paradigm shift.

Not sure what the NBT is in that area, but it will happen and scheduled TV will simply disappear. I could live without it already.

Dave

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Agreed Mallette, streaming is the wave of the future. Rumour has it that the infrastructure has already been started, so it's just a matter of time until there's enough in place to turn it on.

It'll be interesting to see how Youtube adapts too....I think it's only a matter of time (ad money) until we start seeing more mainstream style "shows" on Youtube. Many already exist, but they're usually more of a garage production style....

Evoluti

Not sure what the NBT is in that area, but it will happen and scheduled TV will simply disappear. I could live without it already.

Dave

I actually prefer to watch my TV "live" so to speak. Should there be any breaking important news or weather issues then I will be directed to it right away. I feel a little disconnected by watching "recorded" shows. Movies are the only exception.

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  • 1 month later...

Heard this today on NPR. Looks like Netflix will soon split into two companies. One doing discs through the mail (called Qwikster.....?), the other streaming (Netlfix). If doing both services, I guess subscribers will soon have two seperate bills to pay and two websites to log onto. The price increase is the same, around 60%. Seems like a step back for Netflix.

We'll see if this really happens and how the interface and process ultimately works.

Here is an article form Boston.com.

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Should there be any breaking important news or weather issues then I will be directed to it right away. I feel a little disconnected by watching "recorded" shows.

Weather? I whup out my phone and punch "radar." Pretty much same for news. Maybe you aren't, but I am ALREADY Borg.

Dave

PS - I got an emailed apology from the CEO of Netflix about the precipitous rate and service change. Seems he felt they had met users expectations that Netflix was too good to be true by proving it.

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Yeah I got that email too.... I had already ready canceled my streaming cause it's essentially worthless after you built a dedicated home theatre with awesome surround sound. Now the fact that they are switching websites to "quickster" has me thinking of canceling the disc by mail. Maybe i'll just start buying movies?[:'(]

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I assume you all got this email also.

_____________________------------------------------

Dear Jon,



I messed up. I owe you an explanation.



It is clear from the feedback over the past two months that many
members felt we lacked respect and humility in the way we announced the
separation of DVD and streaming and the price changes. That was
certainly not our intent, and I offer my sincere apology. Let me
explain what we are doing.



For the past five years, my greatest fear at Netflix has been
that we wouldn't make the leap from success in DVDs to success in
streaming. Most companies that are great at something – like AOL
dialup or Borders bookstores – do not become great at new things people
want (streaming for us). So we moved quickly into streaming, but I
should have personally given you a full explanation of why we are
splitting the services and thereby increasing prices. It wouldn’t have
changed the price increase, but it would have been the right thing to
do.



So here is what we are doing and why.



Many members love our DVD service, as I do, because nearly every
movie ever made is published on DVD. DVD is a great option for those
who want the huge and comprehensive selection of movies.



I also love our streaming service because it is integrated into
my TV, and I can watch anytime I want. The benefits of our streaming
service are really quite different from the benefits of DVD by mail. We
need to focus on rapid improvement as streaming technology and the
market evolves, without maintaining compatibility with our DVD by mail
service.



So we realized that streaming and DVD by mail are really
becoming two different businesses, with very different cost structures,
that need to be marketed differently, and we need to let each grow and
operate independently.



It’s hard to write this after over 10 years of mailing DVDs with
pride, but we think it is necessary: In a few weeks, we will rename
our DVD by mail service to “Qwikster”. We chose the name Qwikster
because it refers to quick delivery. We will keep the name “Netflix”
for streaming.



Qwikster will be the same website and DVD service that everyone
is used to. It is just a new name, and DVD members will go to
qwikster.com to access their DVD queues and choose movies. One
improvement we will make at launch is to add a video games upgrade
option, similar to our upgrade option for Blu-ray, for those who want to
rent Wii, PS3 and Xbox 360 games. Members have been asking for video
games for many years, but now that DVD by mail has its own team, we are
finally getting it done. Other improvements will follow. A negative
of the renaming and separation is that the Qwikster.com and Netflix.com
websites will not be integrated.



There are no pricing changes (we’re done with that!). If you
subscribe to both services you will have two entries on your credit card
statement, one for Qwikster and one for Netflix. The total will be the
same as your current charges. We will let you know in a few weeks when
the Qwikster.com website is up and ready.



For me the Netflix red envelope has always been a source of joy.
The new envelope is still that lovely red, but now it will have a
Qwikster logo. I know that logo will grow on me over time, but still,
it is hard. I imagine it will be similar for many of you.



I want to acknowledge and thank you for sticking with us, and to
apologize again to those members, both current and former, who felt we
treated them thoughtlessly.



Both the Qwikster and Netflix teams will work hard to regain your
trust. We know it will not be overnight. Actions speak louder than
words. But words help people to understand actions.



Respectfully yours,



-Reed Hastings, Co-Founder and CEO, Netflix



p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.

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