# Netflix announces price increases for new customers



## dpeters11 (May 30, 2007)

Existing customers will keep the old price for a time, possibly two years. New customers would see a $1 or $2 increase.

http://arstechnica.com/business/2014/04/netflix-plans-price-hike-for-its-subscription-plans/


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## Go Beavs (Nov 18, 2008)

That's kind of refreshing... Existing customers get lower pricing while new customers get the increase. Usually it's the other way around.


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## Stewart Vernon (Jan 7, 2005)

You can bet it doesn't last long... they grow the business by adding new customers. If a new customer has to pay more than an "existing" customer... what happens once that new customer becomes an existing customer and wants to know why he is paying more than another existing customer?


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## coolman302003 (Jun 2, 2008)

It is really inevitable, in my opinion.


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## James Long (Apr 17, 2003)

Stewart Vernon said:


> You can bet it doesn't last long... they grow the business by adding new customers. If a new customer has to pay more than an "existing" customer... what happens once that new customer becomes an existing customer and wants to know why he is paying more than another existing customer?


The same thing that happens with our satellite services when someone who signed up yesterday got a different discount than someone who signed up today after the offer ended. Or a person on a grandfathered cell phone plan who gets a better rate than new customers. The world is full of "buy now and save" that doesn't apply to customers after the window.


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## mwdxer (Oct 30, 2013)

I have always been surprised that Netflix charges the same for a streaming customer as a 1 DVD at a time one. They have the extra cost of postage.


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## snowcat (May 29, 2007)

mwdxer said:


> I have always been surprised that Netflix charges the same for a streaming customer as a 1 DVD at a time one. They have the extra cost of postage.


I would think that physical media and the supporting staff is still cheaper than the cost for all the streaming rights. So it doesn't surprise me that the price is the same.


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## jimmie57 (Jun 26, 2010)

AT& T is getting in it now:
http://www.bloomberg.com/news/2014-04-22/at-t-chernin-to-invest-500-million-in-online-video-services.html?cmpid=yhoo


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## oldschoolecw (Jan 25, 2007)

Stewart Vernon said:


> You can bet it doesn't last long... they grow the business by adding new customers. If a new customer has to pay more than an "existing" customer... what happens once that new customer becomes an existing customer and wants to know why he is paying more than another existing customer?


It's still a great deal for new customers and if and when our grandfathered bills go up, I will pay the required amount. NetFlix is an Awesome service that has the programming I want


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## sigma1914 (Sep 5, 2006)

jimmie57 said:


> AT& T is getting in it now:
> http://www.bloomberg.com/news/2014-04-22/at-t-chernin-to-invest-500-million-in-online-video-services.html?cmpid=yhoo


Now? There's no deal with NF and AT&T, yet.


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## Stewart Vernon (Jan 7, 2005)

My point was...

If you're a business (making up numbers for the example)... and you have a million customers... and you raise prices for new customers and over the next year you add 300,000 new customers... what happens when those new customers want to know why they are paying more? Once you've added a bunch, you become dependent on that income from them... but they start to number enough to want the same deal as other existing customers.

What's the difference in a 2 year "existing" customer and a "new" one who has now been with you for a year?

Not talking about bonuses for signing up that new customers get or temporary discounts... but a pricing tier that is only related to whether you were there last week or not.

The grandfather of prices like this never lasts long with companies before they force everyone onto the new pricing scheme.


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## markfp (Mar 9, 2010)

I feel I get more than my money's worth with Netflix, so while I'm happy to keep the current price for as long as I can. If, at some point, it goes up a buck or two, it wouldn't be a deal breaker for me.


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## James Long (Apr 17, 2003)

Stewart Vernon said:


> The grandfather of prices like this never lasts long with companies before they force everyone onto the new pricing scheme.


Congratulations ... you have answered your own complaint.

Everyone who has Netflix now will be billed for their Netflix service. New customers will be sold Netflix 2 service (or some billing code where Netflix knows if it is an old grandfathered price or a new price. The same way DirecTV offers old grandfathered TV packages. Eventually grandfather dies and the old customers get Netflix 2 service. It is all done on the backend.


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## damondlt (Feb 27, 2006)

When netflix gets to $20 a month, then let's start complaining. Until then it's only about 2% of my current Directv bill.

Sent from my Galaxy S5


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## Stewart Vernon (Jan 7, 2005)

James Long said:


> Congratulations ... you have answered your own complaint.
> 
> Everyone who has Netflix now will be billed for their Netflix service. New customers will be sold Netflix 2 service (or some billing code where Netflix knows if it is an old grandfathered price or a new price. The same way DirecTV offers old grandfathered TV packages. Eventually grandfather dies and the old customers get Netflix 2 service. It is all done on the backend.


Yeah, that's the easiest way to do it. I was thinking more of the people who will cheer "yeah, screw the new guy"... not understanding that this is eventually the way the cookie will crumble.


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## jdspencer (Nov 8, 2003)

Then there's this:

Netflix Is Launching Its Own Cable Channel
The next obvious question is "Will DirecTV carry it?"
And if it is, will it be in HD?


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## damondlt (Feb 27, 2006)

Nice! 

Sent from my Galaxy S5


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## Stewart Vernon (Jan 7, 2005)

Interesting... so then Netflix becomes a $10+ a month cable channel in that scenario... I wonder if the "it's a great deal for $10 a month" people will feel about that?


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## sigma1914 (Sep 5, 2006)

From the sounds of the article, it seems like it's not a channel in the traditional sense. It sounds like a channel that's really just an integrated app.


> Instead of streaming through a third party setup, like a Blu-ray player, those who already subscribe to Netflix would be able to set the TV to the right channel, thus launching an app that would enable buyers to stream whatever available content they want.


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## inkahauts (Nov 13, 2006)

Sounds like they want to launch an on demand channel
To me.


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## damondlt (Feb 27, 2006)

inkahauts said:


> Sounds like they want to launch an on demand channel
> To me.


Thats what I took from it.
Because Tivo Roamios have this app on all their DVRs currently, But not all Providers Support the product.
Meaning some cable providers offer Tivo Roamios, but their version don't all have the Netflix apps.

And I'm not sure if their Cable cards disable your Netfllix on your Bought Roamios, with these cable companies?


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