Netflix lowers monthly fee.

[Barry]

WOW! I love Netflix and when I started it was $19.99/month for 3 DVD's out at a time. Then they raised it to $21.99 at a time that I was having some issues with their turnaround time. The turnaround time problem seems to have been resolved and today I got this email.

 

Dear Barry,

 

Over the last five years, we've grown the Netflix community to over 2.2 million satisfied members. We appreciate your business, and our goal has always been to provide you great service.

 

Since our price increase in June, some of our members have expressed concerns about the new pricing. We've listened to this feedback and are pleased to inform you that we're lowering the price of your Netflix 3-at-a-time program from $21.99 per month to 17.99 per month.

 

You don't need to do anything. Your membership will automatically move to the lower 17.99 price. The lower price will appear on your next bill on or after November 1, 2004. You will still get the same great service and convenience, but now you will pay less for it. So please sit back, relax and enjoy your movies!

 

-Your Friends at Netflix

[bigguyinpasadena]

They did not do this out of the goodness of their hearts

This is in response to both Amazon(where you get something called gold points)and Blockbuster(hate them)have instituted monthly dvd programs at lower cost.

Netflix(of which I am a member)stock(which I own shares of)dropped 40% last week x(

[DelawareGuy]

I haven't received this e-mail from NetFlix yet. Are all members qualified for the discount? I'm on the basic 3 at a time plan.

[eastbayguy]

>I haven't received this e-mail from NetFlix yet. Are all

>members qualified for the discount? I'm on the basic 3 at a

>time plan.

 

Yep, all members on all plans get a price reduction. Hopefully this will help their churn as well as help retain members against both Amazon's proposed offering and other looming competitors.

 

Given what the price reduction did to their stock price, this will soon move to the "buy" column.

 

--EBG

[Barry]

>They did not do this out of the goodness of their hearts

 

Oh I didn't think that for a minute but as long as the price went down, I'm happy (for now). :-)

 

Barry

[Chuck50]

Yep I got my notice. Glad to see the price decrease no nmatter the reason. Haven't seen many in my lifetime HUGS Chuck

[bigguyinpasadena]

This is a wierd company/biz.

Netflix announces an 85% increase in subscribers and the stock falls.

They announce a plan to stay competitive and keep their customer base happy-the stock falls.

And I thought this was going to be a great investment-guess I won't retire anytime soon ;(

[eastbayguy]

>This is a wierd company/biz.

>Netflix announces an 85% increase in subscribers and the stock

>falls.

>They announce a plan to stay competitive and keep their

>customer base happy-the stock falls.

>And I thought this was going to be a great investment-guess I

>won't retire anytime soon ;(

 

Oh tell me about it. The NFLX stock definitely has some issues. One of the problems is the truly vast short interest in the stock. Anything management does correctly is viewed negatively by the shorts. Once the shorts are driven out of this stock, things should be better. Meanwhile, this is not a good candidate for a long term hold if you aren't ready for a degree of roller coaster riding. I don't know where you got in, but hopefully, with the split, you're still in the black.

 

The good news is that NetFlix is about to announce a deal with TiVo to allow delivery of your rentals right to your TiVo unit. Once implemented, NetFlix can deliver all the movies you want at much lower costs. As you watch and then delete a movie, the next movie in your queue should show up on your TiVo.

 

At that point, Netflix and TiVo have a truly excellent video on demand service. No doubt much to the horror of the cable companies as well as a few others.

 

Hang on to NFLX. Despite the current downs, I think this is a good long term value. Good luck.

 

--EBG

[FourAces]

I found the new rate a bit amusing since they increased their fee from 19.95 to 21.95 earlier this year. Obviously, as pointed out, the potential loss of business to Blockbuster, Amazon and startups had them concerned.

 

Big Guy When a company shows conern so does the market

 

RT