Netflix Blames New Pricing on Too Many DVD Subscribers

As Netflix’s prices are due for an increase in September for current subscribers, many people are outraged. In response to all of the outrage, Netflix said that they need to increase prices because not as many people are switching to Instant Streaming only service as they were estimating would switch over. People are still wanting DVD-only service, which costs Netflix about $.75 per disc as compared to $.5 or $.10 per movie when it’s streamed. Also to blame for the higher prices is the rise in cost of movie and television rights. As Netflix is becoming more popular, production companies (like Sony, BMG, Warner Bros., etc) are wanting to charge Netflix more for the use of their films. Personally, the reason why I wouldn’t switch is because their instant catalog is extremely lacking compared to their DVD catalog. There just aren’t enough good movies on there. I think once their catalog gets expanded, which they should be able to do with the increased profit they’ll have from the price hikes, more people will switch over. Read more analyst opinions here.