Netflix Raises Rates: So What?


If you’re a Netflix subscriber, more than likely you’ve heard about the impending rate increase that is coming September 1. Or, if you’re brand new to the DVD-sharing/instant online video streaming service, your new rates go into effect immediately.

It’s a service that I pay for and thoroughly enjoy as a connoisseur of television and movies. And one of its greatest selling points is how cheap it is – especially when I used to travel to the video stores of yore and pay $4 or $5 per video. (I wonder if my children will even know what a video store is?) Honestly – my husband and I sat down and did the math of what we were spending at the store versus how much we would spend with Netflix. There was no competition back then and there still isn’t competition today.

The plan that we have now (all instant streaming and two DVDs at a time through the mail) runs about $16. Apparently with the new prices, that plan will go up to $20 per month. Still cheaper per month than the gym (and its monthly membership) that I never go to.

Eight bucks a month will continue to get you instant streaming and if you want just one DVD at a time paired with the streaming, you’ll pay $16.

Seems that many of the loyal Netflix subscribers are royally ticked off that their rates are going up (want to see some angry comments – go visit Netflix’s Facebook page. Beware, there is some nasty language!). I think a chill pill is in order.

I can’t be too surprised at the price hikes: I’ve always wondered how the company is able to make it so cheap. While I’m sure there’s not a whole lot of overhead, everyone knows how expensive mailing anything is and the company mails DVDs in numbers I can’t even imagine. Also, the copyrights to all of your favorite shows and movies don’t come cheap.

Honestly, it’s a silly thing to get mad about. Maybe if it was for food, utilities or some other necessity in life, I could get behind a movement against 60% rate hikes. But this is just entertainment for entertainment’s sake. Let’s protest something that actually matters.

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