Comments on: Netflix's Blu-ray pricing: A boon for Blockbuster?

The video rental site's new pricing scheme regarding discs in the high-definition DVD format may be instrumental in sending customers back to the company's brick-and-mortar rival.

[sentner]

There are a lot of people who were upset by this move. In fact there were a few Facebook groups created to spread the word and put together a unified front.

http://www.facebook.com/group.php?gid=61368024063

[Bananas_for_breakfast]

I first used Netflix, switched to Total Access for one year, switched back to Netflix. Really, I can't believe anyone who has tried both services would choose Total Access over Netflix. It's worth a $1 premium.

[dragonsky1]

I can't believe anyone would switch back to Netflix after having Blockbuster. I've always had Blockbuster, but my boyfriend had Netflix originally and we had nothing but problems with it. Movies would always take at least two days longer to clear my queque once returned, and new movies would take an extra day to get here. There were a few bumps with Blockbuster when I first signed up a few years ago, but I've had no problems whatsoever since then. We will never go back to Netflix.

[Ltyte]

I agree. I've had both and Blockbuster is better for me. I don't really care about streaming and both services have the same speed in my experience. Blockbuster is cheaper, offers in store returns (HUGE) and one free in store movie per month. The only thing that's peeved me about Blockbuster is the fact they just amended the in store return policy: When you used to return a movie in store they would give you and a movie on the spot AND ship your next movie. That was awesome. Now they don't ship your next one until you return the in store movie. Still a pretty good deal.

[amerist78]

I started out with Netflix, and tried Blockbuster Total Access in 2008. I quickly lost interest in that due to the relative lack of selection of Blu-Ray titles at the local Blockbuster stores. Swapping out the mailed movie at the store for a free in-store rental was very nice and convenient, but when there's nothing on the shelf that you want to see, that quickly loses its novelty. Also, I found that Blockbuster's online service made me wait longer to see new releases versus Netflix I switched back to Netflix when the Instant watch feature was released for Mac. I have watched dozens of movies online that way and I find that it adds more value to what I'm getting with Netflix. If I try to use BlockBuster's download service I'm greeted by this error message: "Downloading and playing movies requires Internet Explorer 5.0 (or newer) and a PC running Windows XP or Windows Vista." I have XP running in VMware on my Mac but I don't want to have to use that every time I go online to watch a movie. I'll stick with the company that recognizes the importance of it's Mac-using customer base.

[hornerea]

Can you do arithmetic?

If you want to rent 3 Blu-Ray Movies from Netflix in a month, you only need the $8.99 1 at a time, unlimited plan ($10.99 with Blu-Ray). That saves you $4.00 over Blockbuster in-store. AND, you don't have to drive back and forth to the store. Saving you time and gas.

[rapier1]

Actually, with the one at a time plan you should be able to get around 8 to 10 movies per month assuming you watch them the day you get them and return them the next day.

[loki_racer]

Blockbuster's online service is no better. They have been raising the price and dropping the benefits over the last year. Initial plan was 3 movies at a time, 2 free in store rentals a month for $17.99. That changed to $19.99 with a couple months. Then they removed 1 of the free in store rentals and added the ability to return the in mail DVDs to the store for a free rental. Once the in mail DVD was returned to the store, they would ship the next ones immediately.

We have finally landed on $21.99, 3 in mail at a time, 1 free in store rental a month, and if you return your in mail movies to the store to get a free rental, they won't ship the next in mail DVDs until you have returned the in store DVD.

[exostencil]

False - Check your facts here: https://www.blockbuster.com/signup/s/plan

And be sure to click the "See all available plans" link in the lower right.

[droobage]

check again. Blockbuster has a $19 a month plan that allows for 3 movies out at a time, plus 5 free in-store rentals per month. Not just 1. Go to their website right now and check the facts.

[saffronfury]

"But if you rent a Blu-ray movie on Netflix, you'll pay a flat monthly fee of $5.99."

So what you are saying is, if you rent one movie a month, you should not get a subscription based service?

Clearly, Netflix is wayy more expensive than Blockbuster!

Thanks Sherlock!

[ibeetle]

Many users downgraded their service (i.e. from 3 out at anytime to 2 out) This was Netflix's plan. With the Blu-ray Disc surcharge increase Netflix is, potentially shipping out fewer disc a month, yet has the same cash income.
The only thing that irks me about this backdoor price increase is Netflix has said in formal finical statements that they are making money on physical discs, both DVD and Blu-ray. Yet, they are loosing money on streaming. Why not leave the Blu-ray customers alone and charge $1.00 or $2.00 a month for streaming?

[steve5200]

I couldn't agree more. I never stream anything, but I rent all the blu-ray discs that I can. When they raised the price on my 3 at a time plan, I initially downgraded to the 2 at a time plan. The more I thought about it, the angrier I got. I have now put my Netflix membership on hold and am now going to give Blockbuster a try.

[jaffreywali]

Amazingly poor analysis!

A three at a time, unlimited Netflix plan will EASILY get you to WAY more than 8 movies a month. That makes Netlfix almost 50% cheaper (even with Blu Ray) than Blockbuster.

I am shocked at how poorly educated some of the writers in cnet tend to be. Are these the guys who could not get jobs at 'actual' tech companies?

[freddyrich]

Why don't you explain a little more with your arguement. I have 2 at a time from Netflix and can never get more than 2 a week, so thats 8 max per month. Even if watch both movies the same day you get them (you must have no life), and send them back the same day- recieve movie on monday morning/ afternoon watch them put them in the mail box monday night / tuesday morning, Netfix won't recieve it until Wednesday, they send you a new one out on Wednesday, you won't get it until Thursday, assuming there is no problems, this is a one day turnaround at best. SO the only way to get more than 8 per month at 2x, you have really grind, and have no life. Not to mention you'll get throttled for sending them back so soon, meaning, next month, you won't recieve any new releases...look it up!

[allargon]

The writer is correct that Blockbuster is cheaper. However, it is not necessarily cheaper to rent Blu-Ray's at the store. What is by far cheaper is Blockbuster's mail service. Skip the silly total access. It's nice, but not necessary. Blockbuster's mail service (NOT Total Access) was already $2/mo. cheaper for 3 at a time than Netflix with this previous move. It is now roughly $7/mo. cheaper than Netflix. Yes, I lose free streaming (no one truly into Blu-Ray cares) and the ability to rent NC-17 movies. However, that's it. I'm surprised that people actually defend Netflix. No April Fools--Blockbuster by mail is the smarter choice!

[vikinzer]

The question is how long will Blockbuster keep their prices? If Blu-Ray is indeed 30% more for Netflix then I understand the increase in prices. I personally did Netflix for a couple months without Blu-Ray and didn't find it to be worth my time. The streaming was nice, but we never watched the videos in enough time to make it worth the money, and we were only on the 8.99 option. Once I discovered Hulu the streaming lost a lot of it's luster. It did have stuff Hulu didn't have, but I don't have nearly enough free time to take advantage of everything I might want to watch anyway.

It's impossible to serve all the people all the time. It sounds like Netflix still owns the price advantage for non Blu-Ray users. You argue they are loosing out among their more "run of the mill" users. I would argue their more run of the mill users are probably still on DVD. I wouldn't pay a cent more for Blu-Ray and I know plenty of people who feel the same way I do.

[sanjayb]

Apparently I am not one of them. I will be always renting Blu Ray from now on. Nothing beats the quality Blu Ray provides. And my local Blockbuster only charges $1 more. Good enough for me.

[extirpator]

There is a problem with Netflix logic. You see I've been getting both blu-ray's and DVD's from Netflix and on multiple occasions I've had DVD's arrive scratched to the point they won't play; however, I've yet to get a blu-ray disc that is scratched to the point it won't play. In fact I don't think I've seen scratches on the blu-ray discs, but then I don't usually check unless I can't get them to play. So this makes me wonder does it really cost 30% more for them to purchase a Blu-ray disc if they go through twice as many DVD's in the same amount of time? And for what it's worth I have received broken (snapped/cracked) DVD's and Blu-ray's on occasion, but I blame the mail for that.

I've been considering switching to block buster for a while, this seems like as good a time as any. I hope the transition goes smoothly.

[ofmyony]

They should have priced this option properly from the beginning. They new what the costs were from the start. I figure they would rather entice customers at first with the option then see how things went and then spring these added cost on the consumer after they were hooked. This is a total Blockbuster move and something Blockbuster has been doing for years.

I stayed with Netflix but I did drop the Bluray access because it just doesn't matter that much. I don't like how Netflix went about raising rates but I loath Blockbuster. Blockbuster is the AIG of the video rental business. Big and greedy and willing to scam you at every chance. This has not changed for Blockbuster and they will level late charges on you if they get the chance. Blockbuster charges huge late fees on it's Total Access plan if you are late on the in-store trade.

[dragonsky1]

When I returned my movie over a week late, it was only $1.95. They will charge the cost of the movie to your credit card, but it is refunded once you returned the movie. The $1.95 is a restocking fee.

[ofmyony]

They have revised their policy. Here is the latest policy which does include fees if you fail to live up to the contract conditions.


How free in-store movie exchanges work with Online Rentals: Previously, free movie in-store exchange rentals were in addition to the number of DVDs allowed out at-a-time under your Total Access membership plan. However, beginning in February 2009 (in some store locations) and over the course of the next few months (in the remaining corporate and participating franchise stores), this policy will change in two ways. First, all free movie in-store exchange rentals will count towards the number of DVDs you are allowed out under your Total Access plan at any one time. Second, your free in-store exchanges will have no due dates and will not be subject to in-store rental terms. You may keep your free in-store movie exchanges as long as you want, as long as you are a paying Total Access subscriber. If you cancel your Total Access subscription, your free in-store rentals are due back to the store within five (5) days, to avoid any additional in-store fees, if applicable.

[freddyrich]

ofmyony is completly wrong, when you exchange a DVD in the store, it turns into a regular rental, with regular rental rules, 2day or 5day, then you get like 7 days after that before they charge you the price of the DVD, then you have 30 days after that to return the movie to get your money back minus the $1.25 restocking fee. So you never pay a "late fee", also, if you can't return a movie in 45 days, then movie rentals is not for you.

[RobinQueens]

I despise what Netflix pulled on its users with this change in pricing, It is more greed. yet no one is mentioning that you can watch as many of the titles that Netflix streams as often as you want.,,.so far!
I dont know if Blockbuster allows you to do that. I use that option a lot, it is better than Hulu, because there are zero commercials. That is the only benefit of Netflix at this point. Plus, they never stream NEW movies.
The Idea that I pay 3 times as much to rent 2 movies on Blu Ray at a time as I did previously is disgraceful. Lets assume they do pay 30% more for blu ray movies, which I think is an exaggeration, 30% is still not the 33% that became my increase. So in effect they are taking MORE advantage of its subscribers. If Blu Ray ever hopes to be the standard for watching media, this effort of greed, along with the cost of buying Blu ray players and movies must truly take steep decline in costs. Yes I know, I have mastered the obvious.

[Jimbo283]

I don't know... I don't like price hikes, but when I put it into perspective it's an additional 12 dollars per year for the plan I'm on (1 at a time, unlimited + streaming). Maybe if I had a higher tier plan I'd have a problem with it.

[RobinQueens]

One more comment to those who feel that people who prefer Blu ray do not care about streaming video? That is utter nonsense, There are classic movies and entire TV series' that you may want to watch or havent seen in years, not all Blu Ray users are that shallow. however I still say Netflix so should go intercourse thyselves entirely.

[GryphonInfinity]

People are forgetting that only a couple months ago Netflix released a statement admitting that they cater to new customers, leaving existing customers in the dark. Existing customers will have very long waits on new releases, new customers will be getting most of the new movies. I experienced this first hand having become a subscriber for the first time about 7+ months ago.

When I first started, I was getting most of the newest Blu-Ray releases in timely manner. After my second month, however, I stopped receiving new releases for at least a month and a half. The only movies I got were ones that were not wanted by others. In the last few months of my subscription I wasn't receiving ANY new releases at all. Virtually everything in my queue had a "long wait" or "very long wait."

In the mean time, a friend of my decided to setup his own Netflix account under the free trial. All of the movies that were "long wait" in my queue were either "available" or "short wait" in his queue. Many times, I would watch a movie in my queue go from "long wait" to "available" and right back to "very long wait" without getting the movie. Keep in mind, these were movies that I kept at the top of my queue for months.

Paying more for Blu-Ray when they don't even care about existing customers, we are paying for nothing!

I canceled my subscription about a month and a half ago (before this announcement) because I stopped getting new releases altogether. Sadly, I was considering returning (as a new customer so I could "play" their game and get new releases) but after hearing this news it's off to Blockbuster for me.

Netflix, you are digging yourself in a huge hole here and driving your business to other companies.


On another note, I was unable to find a method to leave "virtual" feedback on the Netflix site. At best, I only found a number for their customer service. Personally, I would rather email someone so I can have clear documentation of our conversation.

I guess they are not interesting in feedback from their customers. Guess they really don't care about any customers after 2 months.

[Sir_Watchalot]

I experimented for a couple months by subscribing to both Blockbuster Total Access and Netflix 2 at a time. I then watched every movie and always mailed the movies back using the same post office the next morning for both. In this race, I got more movies per month from Netflix than from Blockbuster and therefore feel it's a better deal for the dollar. I just cancelled Blockbuster Total Access. Netflix Streaming is a nice extra benefit, I can watch on my laptop when traveling. I haven't watched a BluRay yet, DVD's seem pretty good with my eyesight, and I'll need to watch a couple BluRay's before I decide if the extra dollars are worth it. But for now, getting more DVD movies per month using the 2 at a time subscription plan proved to me that Netflix is better suited for my typical useage and has a lower cost per movie.

[exostencil]

<i>"Blockbuster's plan is $19.99. Netflix's comparable plan is $20.99, with Blu-ray availability."</i>

This is an apples to oranges argument. The comparable plan from Blockbuster is actually just $15.99 per month. If you go to their website, you need to click on the "See all plans" link in the lower right to view their "By mail" plans.

The Blockbuster price you've quoted is actually for a Total Access plan which grants you five FREE in-store movie exchanges and discounted game rentals. Please make the necessary changes to your article.

Thanks!

[chrisdi1]

Obviously the person writing this article isn't a netflix subscriber. Netflix is much cheaper!!! So far I have rented on average 8 to 10 movies a month on a 2 DVD at a time plan and it's much cheaper then BB. Plus with my Roku box I stream about a movie or tv show a day all included in my 2 dvd rental plan. Can BB match that?

[freddyrich]

What have you "streamed", Step Up 2, Postal or Superbad? Netflix streaming sucks, they have nothing new on there to make me want to keep it.

[abcd9009]

If you are looking for renting commercial Hollywood movies I don't see any difference between the selection available at Blockbiuster vs Netflix. Moving to non-commercial - documentaries or Indie films, that's where Netflix shines.
I don't think Netflix is going to lose business just because of the $1 increase. Granted some will switch to BB but the rest are going to stay. DVD still trumps Blu-ray in terms of sales. The true impact will be in the next decade when we'll have enough people with HDTV & blu-ray to do the comparison.

[exostencil]

This isn't just a $1 increase. Plans including Blu-ray access will increase anywhere from one to NINE dollars per month, depending on your subscription tier.

[crosbyct]

Blockbuster doesn't have a blu-ray surcharge. I'm switching.....

[Vikrampooja]

Don't get thier logic - the price of Blue Ray discs is 30% higher so they increased the price by 400%? Not sure who is doing the Math there.

I have been with Netflix since 2001 and feel stabbed in the back with this increase. I swore to never go back to Blockbuster because they treated thier customers badly - now Netflix is doing the same. Maybe it is time to go back to Blockbuster.

[danno321s]

So far out of 20 movies I rented from Netflix, only 1 came in Blu-Ray format. I don't rent films by format. I am going back to the DVD-only plan.