Despite the outcry after Netflix announced a 60 percent price hike and separate DVD and streaming plans, most will stay with the service and change their plans, according to a recent survey.

After interviewing 500 customers who currently subscribe to both DVDs and streaming, TDG (The Diffusion Group) "predicts that between 12 percent and 15 percent of dual-service Netflix subscribers will in fact cancel their service in the next six months specifically because of the new pricing scheme," which amounts to between 2 million and 2.5 million subscribers.

In its announcement today of its second-quarter earnings, Netflix revealed it now had 25 million members all over the world, from 15 million a year ago. "During the quarter, the streaming only plan continued to gain in popularity, with nearly 75 percent of our new subscribers signing up for it," Netflix stated. "With the rapid adoption of streaming, DVD shipments for Netflix have likely peaked."

Netflix seems to verify TDG's prediction: "Our estimate is that by end of Q3 in the U.S., we’ll have about 22 million people subscribing to our streaming service, about 15 million people subscribing to our DVD service, and about 25 million total U.S.subscribers (with about 12 million people subscribing to both streaming and DVD)."

While that seems like a lot — and it is — it's a loss that Netflix can deal with, with that kind of buffer. In the TDG analysis, it's "a cost Netflix considers justified and reasonable in order to (a) realign its cost and revenue structure, and (b) wean its subscribers away from DVDs and toward streaming video (a strategic imperative)."

Netflix expects to see the brunt of the impact from cancellations in its third quarter, when the pricing changes take full effect (beginning in September).

In the 22-page report, TDG elaborates a bit more about that business rationale: "Simply stated, Netflix has been on a rip, fueled by a growing base of very satisfied consumers—especially when it came to streaming video users. At the same time, Netflix was spending a fortune to buy distribution rights to better content on better terms and planning for rapid international expansion."

When Netflix first broke the news to its subscribers, 80,000 vented on the company's Facebook page about it, with most saying that they were ready to cut ties completely. (When last we wrote about it, there were 30,000 comments.)

But now, this targeted report from TDG appears to show some compromise on the part of Netflix members, while still registering their disappointment over the new pricing plans: 70 percent of the respondents said as much when asked.

Due to the price increases (i.e. a plan that included both DVDs and streaming went from $10 to $16), TDG found that 44 percent of the report's participants were likely to cancel their DVD subscription, while keeping streaming; 34 percent would do the opposite. At least in this questionnaire, streaming seems to have the edge.

Those who said they'd ditch Netflix entirely named "a rental kiosk like Redbox" as the number one replacement option (42 percent), while 17 percent were prepared to check out streaming alternatives, such as Hulu Plus and Amazon.

Maybe one of the reasons folks are going to end up cooling down and sticking with Netflix has to do with its long history of customer satisfaction, including a No.1 ranking as of February in delivering "the best overall attributes of any brand."

Another reason: most of the respondents on this survey (75 percent), at least, already pay more than the minimum. A little over 46 percent paid between $10 and $14 monthly and nearly 23 percent pay between $15 and $20 a month. Participants in the report rented an average of six discs a month, with most falling in the 3 to 5 disc range (41.4 percent).

To soften the blow, Netflix is adding more to its streaming content: In news that should make quite a few "Mad Men" fans happy, Netflix shared that "in a few days, every episode of 'Mad Men' will become available in syndication exclusively on Netflix."

Also some newish-oldies but goodies will make it too:

We reached agreements with Miramax and Revolution Studios to add several hundred movies on a rotating basis, giving our subscribers access to critically acclaimed films such as "Pulp Fiction," "Good Will Hunting," "Black Hawk Down," "Across the Universe," and "Shakespeare in Love” as well as box office favorites like "Daddy Day Care," "Hellboy," and "Anger Management."

If Netflix is indeed trying to wean its customers off DVDs and onto streaming, it seems to be working. On average, respondents spent 7.1 hours a week watching streamed content, with younger subscribers likely to log more hours than older members.

While there were varying degrees of dissatisfaction with Netflix following the announcement of the separation plans, the biggest group still says they're definitely not going to cancel: almost 24 percent of respondents. The next biggest block, at 16.7 percent, remained neutral in their plans.

Ultimately, the report shows that Netflix may be able to weather this storm and come out ahead:

"TDG believes that, when all this plays out, Netflix will ultimately be a winner because of this new pricing scheme — but this is only a cautious endorsement of the move. The company is growing so fast that it is very likely any cancellations will be made up over one or two quarters, which leaves them with increased prices, decreased cost of service (primary postal savings), and the majority of their legacy subscribers still on board. Translation: greater revenue and improved margins, a great combination to help Netflix fuels its growth."

They definitely don't see Hulu Plus or Amazon as real competitors: "We are also mindful of Hulu Plus and Amazon Prime. Hulu Plus added about 325,000 subs in Q2; we added close to 2 million. We invest much more than Hulu Plus in content, in marketing, and in R&D ... So far, we haven’t detected an impact on our business from Amazon Prime."

http://technolog.msnbc.msn....-will-cancel-netflix

I'm cutting off the DVD part but I'm keeping the streaming, it's just too good and still worth the money.

We are going to stick with the DVD + streaming but cutting back from 3 out at a time to 2. That way the rate will stay the same and we can also stream different content to two different locations at the same time. That requirement keeps us hooked on the DVD option which we seldom use (but our partner does).

[This message has been edited by spark1 (edited 07-26-2011).]

My mom uses Netflix. Not sure what she plans to do, most likely will continue streaming and cut back to 1 or 2 DVD's out. She rarely gets DVD's anymore anyhow, so not like its a big issue...

Me, I'd personally prefer subscribing to Hulu Plus, but only because I don't watch movies often, and only watch a handful of TV shows that are available on Hulu. And for $8 a month its worth it.

I have discontinued Netflix entirely (streaming and DVDs).

I'll find other methods such as Hulu or coughtorrentscough.

Ill use amazon to get DVDs if I want any to keep.

Rental DVDs? Redbox is local (I have 10 nearby me) and "Family Video."

[This message has been edited by htexans1 (edited 07-26-2011).]

I haven't found any pressing need for Netflix. I'm already paying too much for Dish to get TV. Most of the availble channels are worthless and blocked the dozen QVC type channels, the dozen foreign language channels and the dozen religious (donate to the cause) channels, the dozens of pay for view p0rn channels, pay for movie channels.

[This message has been edited by Old Lar (edited 07-26-2011).]

quote Originally posted by Old Lar: I haven't found any pressing need for Netflix. I'm already paying too much for Dish to get TV. Most of the availble channels are worthless and blocked the dozen QVC type channels, the dozen foreign language channels and the dozen religious (donate to the cause) channels, the dozens of pay for view p0rn channels, pay for movie channels.

Yeah, dish might offer 600 channels but 500 of them are utterly worthless!

We just dumped them because they doubled their rates. People are leaving them, their stock is taking a dump..... it was not a wise move.

quote Originally posted by WBailey1041: Yeah, dish might offer 600 channels but 500 of them are utterly worthless!

You are so generous.

I swear that there are only 20 channels with actual shows on, none of which are worth watching. I'd say 95% or more are infomercials at any given time.

It's really bad sometimes, like at 3 am when 19 of those 20 channels go to infomercials as well. We get the same nothing with broadcast.

Brad

You dont need any special plans to run multiple streams, AFAIK and have tested, the basic streaming package will let you attatch up to 6 devices (XBOX tv streamer etc) with each CURRENTLY streaming PC acting as one, and has no limit I have found to how many streams you can run, up to those 6.

Myself, my brother and father all plan to cancel and go into one streaming account, Netflix TOS actually outlines how you can share accounts and doesnt prohibit it anywhere.

Maybe if they had grandfathered existing customers in or even offered a reduced functionality plan for us, people wouldnt feel so violated. Id be happy with 2 DVD a month, but as it is, they raced into the market, undercut the competition and ran them out of busniess for the most part, then jacked up the prices once they felt they had good market share, thats some shitty practices right there.


And my GF has Direct TV and hates it, she never got the package she signed up for, is paying twice what she was supposed to, and they just raised it more. On top of that there is cable strung all over her apartment and it runs through an open window she has to keep a towel in. I didnt know her when she signed up or it was installed or I would have raised hell. On top of that we have the listing filter set to only show the channels we watch, which is about 25 out of whatever bullshit they claim. I know I explicitally counted 16 shopping channels when I was setting the filters. In reality we only watch 10 of the 25 we filter even.

quote Originally posted by 86GT3.4DOHC: And my GF has Direct TV and hates it, she never got the package she signed up for, is paying twice what she was supposed to, and they just raised it more. On top of that there is cable strung all over her apartment and it runs through an open window she has to keep a towel in.

Raise Hell anyways! If that's true, I don't understand why she doesn't call the company and have someone out. That just doesn't make sense.

quote Originally posted by theBDub: Raise Hell anyways! If that's true, I don't understand why she doesn't call the company and have someone out. That just doesn't make sense.

Says everytime she calls she gets a runaround and no one can explain it and no one seems to care. Sounds about right to me.

quote Originally posted by 86GT3.4DOHC: You dont need any special plans to run multiple streams, AFAIK and have tested, the basic streaming package will let you attatch up to 6 devices (XBOX tv streamer etc) with each CURRENTLY streaming PC acting as one, and has no limit I have found to how many streams you can run, up to those 6.

Recent changes place it to 1 streaming device in use at a time per # of DVD's you have sent to your home at a time. So 1 DVD out, 1 device streaming, 2 DVD's out at a time, 2 devices streaming and so on. That change was made a month or so ago I'm guessing, because it was after we joined. It hasn't effected our streaming yet, we can still stream to TV and computer at the same time, but it has started effecting some people. There was a thread where that was brought to my attention and I searched the Netflix site and found the section on it, but I can't seem to remember the thread and don't have time to go searching Netflix for the info right now.

I'm not sure how they plan to handle this now that streaming only will be available. Probably end up being something like...

*$7.99 for unlimted streaming.

Then somewhere in the tiny fine print at the bottom of the add.
* $7.99 unlimited streaming applies to one device streaming, additional unlimited streams may be added to your account for a additional $2.99 a month.

[This message has been edited by Khw (edited 07-26-2011).]

I'll be dropping the DVDs as well. The streaming cant be beat. I'll keep that over Hulu+
tho, I do find myself more & more using "improper" sources for my streaming content.
but - them sources also make me appreciate the quality & the environment of Netflix.

I want DVDs. The only use to me in streaming is if I want to watch a blockbuster movie on your 3" phone screen. If you watch it online, you have to pay twice...for the internet svc and the movies. If you have trouble with your internet because of weather or some other issue your movie is screwed up or dont work at all. Whats a full length movie take....like 1.5 gb of your 5 gb per month....

If you like getting your stuff streaming online, thats your choice, and if your thrilled with it good for you. It just has absolutely no appeal to me. I can play a DVD in the car while Im traveling, you cant stream it.

While its overpriced, I stick with cable at home. All our towns cable is underground now so the only time I lose anything is when a storm litterally hits the cable company offices. I see satellite dish people always complaining about signals being screwed up so no interest there either. Hooters has satellite and 1/2 the time some of the channels on arent working because its hot, raining or snowing, or winds blowing. Ive rarely seen a whole race there without some kind of issues. I tried to watch the Nascar race a few weeks ago and the TNT signal was so messed up, freezing, pixleating, etc, it was unwatchable and I went home and watched it.

quote Originally posted by rogergarrison: I want DVDs. The only use to me in streaming is if I want to watch a blockbuster movie on your 3" phone screen. If you watch it online, you have to pay twice...for the internet svc and the movies. If you have trouble with your internet because of weather or some other issue your movie is screwed up or dont work at all. Whats a full length movie take....like 1.5 gb of your 5 gb per month.... If you like getting your stuff streaming online, thats your choice, and if your thrilled with it good for you. It just has absolutely no appeal to me. I can play a DVD in the car while Im traveling, you cant stream it. While its overpriced, I stick with cable at home. All our towns cable is underground now so the only time I lose anything is when a storm litterally hits the cable company offices. I see satellite dish people always complaining about signals being screwed up so no interest there either. Hooters has satellite and 1/2 the time some of the channels on arent working because its hot, raining or snowing, or winds blowing. Ive rarely seen a whole race there without some kind of issues. I tried to watch the Nascar race a few weeks ago and the TNT signal was so messed up, freezing, pixleating, etc, it was unwatchable and I went home and watched it.

If you like waiting a few days before every movie you wanna watch, that's your choice, and if you're thrilled with it then good for you. It just has absolutely no appeal to me. I can go to a brick and mortar store that day and be watching it within the hour, or stream immediately on my phone or computer. You can't

And my internet isn't limited. Yours is?

Seriously though, you aren't supposed to have a DVD player in the front part of the car that works while the car is driving. It's supposed to be shut off.

Wife wasn't ready to leave yet so I found it.

https://www.netflix.com/FAQ?p_faqid=2902

quote Q:Can I watch movies instantly on more than one PC or Netflix-ready device? A:Some membership plans allow you to watch simultaneously on more than one personal computer or Netflix-ready device. If you are on the Unlimited Streaming plan, the Unlimited Streaming + 1 DVD out-at-a-time plan or a limited streaming plan, you may watch only one device at a time. If you are on the Unlimited Streaming + 2 DVDs out-at-a-time plan, you may watch on up to two devices at a time. Members on the Unlimited Streaming + 3 DVDs out-at-a-time plan may watch on up to three devices at a time. The maximum is four devices at a time -- available for members on the Unlimited Streaming + 4-or greater DVDs out-at-a-time plan.

[This message has been edited by Khw (edited 07-26-2011).]

Nice, not sure when that took effect. They are taking all the things that made them great and gave them explosive growth and whittling them down.

Newsflash Netflix, a large chunk of your userbase only uses it because its marginally easier than pirating and worth the cost. I can get much better selection and just as good of quality from half a dozen diffrent illicit sites, not to mention ALL the movies and ALL the tv series out there. You can get brand new episodes of almost every show legitamately through the shows websites, and you can get every movie you could dream of from sites like surfthechannel.com I only picked up Netflix because it was easier and more convienant and cost effective. I find the selection mediocre at best and Ive seen most everything I care too, I honestly havent gotten a DVD in months and I can never find anything to stream that I am interested in and havent seen before.

I know I reccomended numerous customers to them who are now paying subscribers, thats not going to be the case going forward, in fact Im not going to be telling people about how neat or convienant they are Im going to be telling people how the selection is slim and the giant '**** You' they sent to all their customers once they felt they had enough market share and had beat down the competition enough to get away with it.

quote Originally posted by theBDub: If you like waiting a few days before every movie you wanna watch, that's your choice, and if you're thrilled with it then good for you. It just has absolutely no appeal to me. I can go to a brick and mortar store that day and be watching it within the hour, or stream immediately on my phone or computer. You can't And my internet isn't limited. Yours is? Seriously though, you aren't supposed to have a DVD player in the front part of the car that works while the car is driving. It's supposed to be shut off.

MY DVD players are in the back of the conversion van and the back of the limo. They work all the time. I could put a monitor in the front...not any more distracting than texting

No, home internet around here (like RR is 16mg, Verizon is 5 mg) VZ doesnt offer unlimited anymore.. $50 for 5 g, $10 for each gb after. I dont want internet on my 2" phone. I cant even see the title of a movie unless its 6" in front of my face.

I can go over to any of 3 Redbox on my block to get a new movie in a few mins. (2 are 100 yards away)

I can do a DVD with one of my recorders of any tv programs I want. I use eraseable DVD+RW. I have a library of DVDs with more titles than a storefront. I have around 200 titles just on UFOs.

quote Originally posted by rogergarrison: MY DVD players are in the back of the conversion van and the back of the limo. They work all the time. I could put a monitor in the front...not any more distracting than texting No, home internet around here (like RR is 16mg, Verizon is 5 mg) VZ doesnt offer unlimited anymore.. $50 for 5 g, $10 for each gb after. I dont want internet on my 2" phone. I cant even see the title of a movie unless its 6" in front of my face. I can go over to any of 3 Redbox on my block to get a new movie in a few mins. (2 are 100 yards away) I can do a DVD with one of my recorders of any tv programs I want. I use eraseable DVD+RW. I have a library of DVDs with more titles than a storefront. I have around 200 titles just on UFOs.

That stinks! Unlimited here... and it's cheaper.
But a movie would definitely be more distracting than texting. Luckily I don't do either.

quote Originally posted by theBDub: That stinks! Unlimited here... and it's cheaper. But a movie would definitely be more distracting than texting.

I dissagree.

1. You can follow a movie by just listening to it. You can't do that with a text.

2. You can 'fastglance' a picture. Text you have to focus on words & structure.

quote Originally posted by Boondawg: I dissagree. 1. You can follow a movie by just listening to it. You can't do that with a text. 2. You can 'fastglance' a picture. Text you have to focus on words & structure.

A movie takes away my sight and hearing. A text is like a conversation with someone in the car. I don't have to look at my phone when I text or press send. Like I said, luckily I don't do either one, though.

quote Originally posted by theBDub: A movie takes away my sight and hearing. A text is like a conversation with someone in the car. I don't have to look at my phone when I text or press send. Like I said, luckily I don't do either one, though.

Texting ALSO takes hands too, and I think if you were texting OR watching a movie in a car, YOU ARE WRONG, and can hurt someone. Since people cant walk and chew gum anymore, not sure how you texting would be considered safe"er" than any other distraction. Its not. Understood you dont do it, but I do not consider it any less dangerous than any other form of distracted driving.

[This message has been edited by tbone42 (edited 07-26-2011).]

Mine is on hold status.

I don't get it, . Netflix ? Heck I am not a person who likes to be captivated by a box/screen. Even HBO et al do not entice me to spend money, much less new releases at the theater.

quote Originally posted by Boondawg: You can 'fastglance' a picture. Text you have to focus on words & structure.

Bullship ! You must not be a tit man/leg man/butt man, .

Be interesting how that long-term strategy of streaming works out as ISPs work hard to destroy net neutrality and add ever-decreasing bandwidth data caps. Verizon Wireless for instance caps at a rate that allows you to watch about one and a third HD movies a month and then that's it for internet. The wired services are better, for now, but every bandwidth provider out there has discovered that it's cheaper to cut customer bandwidth than it is to spend money on adding infrastructure, resulting in the bandwidth pie being divided into ever-thinner slices for incoming customers.

quote Originally posted by 86GT3.4DOHC: And my GF has Direct TV and hates it, she never got the package she signed up for, is paying twice what she was supposed to, and they just raised it more. On top of that there is cable strung all over her apartment and it runs through an open window she has to keep a towel in. I didnt know her when she signed up or it was installed or I would have raised hell. On top of that we have the listing filter set to only show the channels we watch, which is about 25 out of whatever bullshit they claim. I know I explicitally counted 16 shopping channels when I was setting the filters. In reality we only watch 10 of the 25 we filter even.

This surprises me. They have always had excellent customer service from DirecTV. the installation was good and I didn't have wires all over the house.

In fact I like them so much that when I moved to Austin, I kept the account open even though we live in an apartment that makes us have Time Warner cable (ugh). As soon as we get a house, a dish is going back up.

quote Originally posted by Flamberge: This surprises me. They have always had excellent customer service from DirecTV. the installation was good and I didn't have wires all over the house. In fact I like them so much that when I moved to Austin, I kept the account open even though we live in an apartment that makes us have Time Warner cable (ugh). As soon as we get a house, a dish is going back up.

Dunno, seems pretty consistant though I havent called them. They also wont let her cancel, like a $400 early term and shes been in the apartment for like 14 months now too.

Also, there are federal laws that entitle every renter \ condo \ home owner assoc peon \ etc the right to recieve broadcast signals via satelite and radio antennas that cannot be infringed upon. I saw the FCC article a while back, but basically no one can stop you from putting up a reasonable dish or antenna unless there are explicit and real saftey concerns therein. Might look into it.

EDIT:
http://transition.fcc.gov/mb/facts/otard.html

[This message has been edited by 86GT3.4DOHC (edited 07-26-2011).]

quote Originally posted by tbone42: Texting ALSO takes hands too, and I think if you were texting OR watching a movie in a car, YOU ARE WRONG, and can hurt someone. Since people cant walk and chew gum anymore, not sure how you texting would be considered safe"er" than any other distraction. Its not. Understood you dont do it, but I do not consider it any less dangerous than any other form of distracted driving.

Of course it can. That's why I don't do it... I find it extremely dangerous. But having a movie on in the front? That would take it all out of me. That's all I'm saying.

I don't do either so I should probably just quit replying. Y'all are gonna think I support texting and driving.

Actually when I owned a limo business, my personal one DID have a 9" tv in the dash. It got off the air tv, or vcr from the rear. I had it to watch while I waited like outside a restaurant, prom, etc. I did lots of statewide trips late at nite usually with customers asleep in back. It was on all the time and I did listen to it more than watch it. I had a long road trip from Columbus to Detroit one nite and we all watched the whole first nite of Desert Storm on live tv in the car on the way. I prob put 150,000 miles on that car without even a close call.

quote Originally posted by rogergarrison: Actually when I owned a limo business, my personal one DID have a 9" tv in the dash. It got off the air tv, or vcr from the rear. I had it to watch while I waited like outside a restaurant, prom, etc. I did lots of statewide trips late at nite usually with customers asleep in back. It was on all the time and I did listen to it more than watch it. I had a long road trip from Columbus to Detroit one nite and we all watched the whole first nite of Desert Storm on live tv in the car on the way. I prob put 150,000 miles on that car without even a close call.

Then you're a better driver than I am! I know my limits... I'd get distracted too easily.

We're going to drop streaming and go with DVD only, for several reasons:
1 - DVD's usually have bonus material and commentaries
2 - Many of the shows we have on our queue are not available via streaming (e.g. the old Kung Fu and Dark Shadows tv series)
3 - Rewinding the streaming is a pain, or at least on OUR blu-ray it is. And we do it often.
4 - We DON'T mind waiting. In fact, from reading this thread I get the impression that many of you watch a lot more movies than I do.

But I heard today that Walmart is going to get into the streaming business and undercut Netflix. That could get interesting. Sorry, I don't have any details, you'll have to search the Net for more info.

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Check your PM's here.
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Cancelled it yesterday.

quote Originally posted by Cheever3000: We're going to drop streaming and go with DVD only, for several reasons: 1 - DVD's usually have bonus material and commentaries 2 - Many of the shows we have on our queue are not available via streaming (e.g. the old Kung Fu and Dark Shadows tv series) 3 - Rewinding the streaming is a pain, or at least on OUR blu-ray it is. And we do it often. 4 - We DON'T mind waiting. In fact, from reading this thread I get the impression that many of you watch a lot more movies than I do. But I heard today that Walmart is going to get into the streaming business and undercut Netflix. That could get interesting. Sorry, I don't have any details, you'll have to search the Net for more info.

yes, I saw that WalMart is jumping in as well. But, since they censor their other medias - I would assume they will censor their online content as well.

anyways - in the end - I will be paying less for my Netflix. I dont get the DVD - I just stream, so, for me - this works even better. I had been looking at switchign to Hulu+, but, now - no need to. Netflix has priced itself on the spot.

We joined Netflix a couple of months ago(because of the price). We don't use it much, so we'll probably drop it after my son's summer vacation is over.

I personally find Redbox the best alternative. For $8 a month I can get 2 new movies a week. Ive seldom seen 2 movies a week come out worth watching. Maybe 3 a month interest me. So Im saving 2/3 over you...and takes me all of 5 mins to pick it up...or less time than an average dump, lol.

I'm glad I sold my stocks in Netflicks before the bloodletting. It was a sweet heart deal when I bought it at $69 a share. In other news I heard WalMart is now offering DVD rentals.

Just changed my Netflix plan to Unlimited Streaming only.
Looking for a good deal on internet sevice so I can cancel my cable TV, just don't have the money to pay $80 for current basic cable and internet package through knology.

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Dealing with failure is easy: work hard to improve. Success is also easy to handle: you've solved the wrong problem, work hard to improve.

quote Originally posted by rogergarrison: If you like getting your stuff streaming online, thats your choice, and if your thrilled with it good for you. It just has absolutely no appeal to me. I can play a DVD in the car while Im traveling, you cant stream it. .

While sometimes jittery, you can stream on the road.

http://www.autonetmobile.com/

It works sometimes jittery, and it stores movies for usage in the car if you wish.

Its full internet in your mobile application.

Theres also a model for multiple users.... example "School buses."

[This message has been edited by htexans1 (edited 07-27-2011).]

I cancelled mine.. I really shouldn't be wasting time watching movies or tv shows anyway.. life is too short seems to really be flying by now that high school is over.