Tuesday, July 12, 2011
Netflix Price Rise: Just in Time for Me
So I get the news today that Netflix is changing the way it charges us. Prices are going up 62 percent immediately from $9.99 for its dual services of DVD rental and movie streaming to $15.98 a month. The service went from $7.99 to $9.99 last year. You can buy each service separately for $7.99 a month, but if you enjoy movies--especially the ones that don't make our market--it is almost necessary to have both services.
Some of the DVDs aren't available streaming and DVDs are, in general, much less convenient. Sony, in fact, recently removed its entire catalog from streaming availability. That's a lot of movies and many of them are the independents I prefer.
There are 24 million Netflix users in the U.S. and my guess is this company is getting richer than a Republican lawmaker in a lobbyist's office. Netflix started the day at 286.80 on the NASDAQ and at this minute (3 p.m.) sits at 294.06. The stock exchange loves a good price increase. The price has jumped from 55.09 in 2009 to 175.70 last year to its current lofty status. And I don't see it coming down soon, unless George Bush buys in. Or I do.