On the recent price hike of Netflix...

I've been with Netflix for some seven years now. It's been a fun ride. I got tired of having to physically go to DVD stores for rental and returns; the late fees were even more tiresome. I guess they have to make their money somewhere.

Netflix has been reasonable. The delivery and processing are fast. If I time it right, I usually get new DVD in the mail every other day. Not bad, aye. Netflix has always been laser-focused on what their core competency is. I like it that they don't get distracted by all the social networking hype. Heck, they even got rid of their community feature which got alot of subscribers mad. But I don't mind it at all. Afterall, I keep my movie queues, and I find the movies and TV shows and documentaries I like. I have little care about anyone else. The recommendation engine by Netflix is decent. So, I can't complain. In fact, Netflix has been quite fair-minded. There were a few occasions in which the Netflix website was down, and I got refund even without prompting. I can tell you, that's a rarity in the corporate world. Try telling that to the big telco; my calls get dropped from time to time, and my complaints won't even get answered satisfactorily by their support, and you can very much forget about refund.

Not sure if you know the background of the recent spat of Netflix users. A little while back (it might have been a year or so ago), Netflix wants to jostle its way into online streaming. It aggressively expands its online streaming catalog, steadily improves the streaming quality. Any subscribers can get the online streaming for free. Netflix has become such a force to behold, that movie studios and cable companies must be trembling with fear.

So then, yesterday I got email notifications from Netflix, saying that they have decided to split the DVD rental service with online streaming. In short, no more free lunch. In the parlour of Google, no more beta version of the real thing. With it, comes price change. I've been on the cheapest plan, $9.99 a month for unlimited DVD, one DVD at a time. With the split, my DVD only plan would actually see price reduced to $7.99 a month. But for those people who want online streaming too - those who would scream "I WANT TO SEE IT NOW!" no doubt - they'll have to fork out another $7.99 a month for the streaming-only subscription.

To be sure, I've become a bit spoilt and pampered by Netflix with its free lunch. Granted that its DVD catalog and streaming catalog are quite different. As much as Netflix has tried to paint that picture, you can most likely find only old movies and TV shows on its streaming catalog. No doubt the movie studios will see to it, that Netflix doesn't get the streaming rights of the latest and greatest movies just hot off the theatre. For me, I like classics, old movies, and documentaries. So, the online streaming free lunch allows me to watch it on my laptop whenever I get bored from work. I'm a patient person; I can still wait for the DVD for latest movies in the mail. I have no problem with that.

Apparently, once something is given out for free, people take it for granted, like it's their birthright. Such is the case with the ferocious attacks to Netflix about its price change, or pseudo price hike of some 60%, as they see it, since they would have to pay double (for 2 plans, one for DVD, one for streaming) instead of just one plan.

I find it all rather amusing. For all the threats of defecting and cancelation of their Netflix subscription, I wonder how many of those would actually carry it through. Afterall, if they have been on the cheapest plan (like I do, paying $9.99 a month), the price change would mean ($7.99 x 2) - $9.99, which comes down to an extra $5.99 a month. If they truly love the streaming service, is $5.99 really that big a deal? Most people pay more than that to buy chips or snacks or even coffee. This is perhaps the biggest cheapskate in my most recent memory.

Price change or not, I'm actually rather secretly glad about this split of subscription plans. The DVD-only plan has worked quite well for me. It's delay gratification; in between the waiting time, I can truly focus on doing some real work (since watching movies is my main entertainment). The instant gratification from its Instant Viewing feature means that I spend more time watching movies than doing real work, which is...not good for me, and I know it. Imagine, instead of doing work or reading a book, I would watch 2-4 movies or documentaries every night. It's free afterall, and I almost feel some obligation to watch in order to get my money's worth (!!!). Twisted logic, isn't it. :)

For that very private reason of mine, I'm only too glad to oblige to Netflix, by telling Netflix that I don't really need online streaming. Yeah yeah, call me old-fashioned. I don't like or believe in social networking. And I don't really want online streaming that much afterall. As such, I change my subscription, and change it back to DVD-only, starting next month. For all that, I get price reduction (from $9.99 to $7.99 a month). All the more reason. :)

Now, I'm happy to have all my time at night again, for some work done, or a few books, or even more chitchats with family. It's a good decision for me. Thanks, Netflix. :)


PS - Granted that I'm in the top 0.001% of movie reviewer ranking on Netflix, I don't think I'll miss writing reviews too much.