NetFlix

So, NetFlix is changing it's price. What does that mean exactly? Well it means that if you use their standard option it will increase by 6.00 a month. That plans includes all the streaming video you want per month plus 1 DVD out at a time.

However you get an option now. If you don't use the streaming service you are paying 8.00 a month for it while getting DVD's for 2.00. Now, when I signed back up for NetFlix I did so because I could  now stream movies to my X-Box360. I went with the streaming only feature. That means for 7.99 a month I could watch as much as I wanted on either a computer or other streaming device. So I don't pay for at home delivery.

All that is really happening is people are now getting an option to not pay for a part of the service they weren't using, the streaming video. So is this something to get upset over?

Well let's look at that for a moment shall we? Do you have phone service? Most likely in some form. Now, with that phone service what sort of options do you have? For your home, or land line, service you probably what I have. Caller ID, call waiting, voice mail, some sort of long distance plan, and probably three way calling and call forwarding. Now, how many of those do you use? Caller ID, call waiting and voice mail? Perhaps the long distance? What about the rest of the things? Don't use them at all? Don't know how to use them? You are still paying for them.

So, what if you were given a different option? If you were given the choice of not paying for those services would you stop paying for them? Yeah you would.  That is all NetFlix has really done. Add on top of that the stories we hear of the perhaps the Postal Service failing and going under what sort of options does that leave?

UPS and FedEx both are more expensive to ship with. Also if you were paying two dollars a month for the DVD service how much profit do you think that makes? Well, let's look at it a moment. If you are like most people you probably go through an average of 4 DVD's a month on the basic service. So, that is .41 cents to ship it to you, plus the cost of the reship envelope plus the .41 cents to return the disk. That cost is .82 cents shipping costs, plus the envelope which we will say costs .20, which brings the total to 1.01. That is the cost of just one DVD. Multiple that by four and you get 4.04 which is 2.04 more than you were paying.

So, by splitting the programs and offering you an option is actually a more practical and honest option for you. You aren't paying for a service you aren't going to use and your cost can stay the same by simply switching services.

What's that you say? You use both services each month? Okay. I can understand your gripe. So let's look at other options. If you cancel the service what are you left with? Well there is always Hulu but that programming is not very vast and they now have a pay service as well. For 8.00 a month you can stream their non commercial programming and have more options. Not 23,000 but more. So what about DVD's? Redbox of course an option for you. However think of this, gas spent driving there to get it and to return it. Plus the 1.00 a day rental. So if you go with 4 movies a month, return them the next day that comes to 4.00. Now, factor in the gas you are using to use that service. I will be nice and let you say it costs you a gallon of gas. 3.48 here for 87 octane. So, 4.00 + 3.48 = 7.48 per month assuming you are never late in getting them back. So, is it worth canceling your Netflix over? .52 a month means you can buy one extra stamp a month. Big savings huh?