Netflix increase ?

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#2163076 18-Jan-2019 12:26

Nah you had to buy an episode or season pass, or buy a movie or rent it. I mean it's not identical in it's model to Netflix but it has been around for yonks. For a long time iTunes TV/Movies was the only legit way to get access to online content legitimately. So it's not surprising they'd be moving to a subscription model, since they did that with their iTunes music store a couple of years ago changing it to a monthly or annual subscription with Apple Music.

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#2163077 18-Jan-2019 12:27

Now everyone has ditched cable/sky/etc and they got a good size customer base.. the price will slowly creep up.

Netflix did make a huge loss, but when they crack down on account sharing, and increase the price its still cheaper than a lot of other options out there.

It has a LOT of content, and will be hard to compete with as other streaming services lack the sheer quantity of content.

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#2163078 18-Jan-2019 12:28

gehenna:
ajw:

I have already checked with netflix customer services perfectly OK to do this.

Not anymore it seems

https://www.valuewalk.com/2019/01/netflix-account-sharing-may-stop-with-this-new-app/

Too bad for someone if it gets it wrong, guess you can’t argue with them to say it’s only family.

I’ve had my IP say I’m in Auckland and other different places when My location is ID by IP.

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#2163084 18-Jan-2019 12:33

networkn:
On another note, around a year ago I was at a tech conference and one of the guys there worked for NF as an external consultant. His indications were that management were secretly aiming to have NF priced at $30 USD for the most expensive tier within 3 years.

They won't make that target in the timeframe indicated, but I do think that price point is the goal. Perhaps even higher. I wouldn't be the least bit surprised if they had a $35 tier in due course and if they start to split content into premium and standard.

That be the end of my subscription then. No way will I pay $50 to $60 NZ for TV.

gehenna

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#2163085 18-Jan-2019 12:37

darylblake:

It has a LOT of content, and will be hard to compete with as other streaming services lack the sheer quantity of content.

Only if it keeps investing in originals. Once licensing deals run out (e.g. Disney) and that non-Netflix content returns to the license holder for distribution on their own platform, Netflix's value proposition will diminish. I believe that's why they have invested heavily in originals over the years, so they don't have to be beholden to external license holders.

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#2163139 18-Jan-2019 12:46

gehenna:

darylblake:

It has a LOT of content, and will be hard to compete with as other streaming services lack the sheer quantity of content.

Only if it keeps investing in originals. Once licensing deals run out (e.g. Disney) and that non-Netflix content returns to the license holder for distribution on their own platform, Netflix's value proposition will diminish. I believe that's why they have invested heavily in originals over the years, so they don't have to be beholden to external license holders.

I agree. But, you then have many many SVOD competing against themselves, and each does originals (in actual fact these are not originals they are exclusive rights, which is apparently a bad thing), so then we have say 7 SVOD services, each is great, each is $25 or $30 or $35, and each has exclusive rights for some excellent TV series. It all comes back to fragmentation, where we will all choose what cool content to forego. We might bear with 3 services at $15 each but 7 at $30+ that's where it will go. 'We will probably move on from complaining about Sky and complain about SVOD fragmentation shortchanging us on so much good content we cannot now afford to watch.

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gehenna

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#2163143 18-Jan-2019 12:56

The good thing is that you can just sign up to these services for the duration of your viewing of a specific thing you want to view. E.G. I can sign up to Amazon Prime for a month to binge The Man in the High Castle, then the next month cancel or pause the subscription and go to Netflix to watch Daredevil, and so on. The flexibility multiple services offers to customers is great. You don't necessarily have to be signed up to multiple services concurrently. Maybe if you want to watch 2-3 different shows a night that are only on disparate services, but if that's the case and you're not willing to pay for multiple services concurrently you have the option of modifying your viewing habits - as we all did when streaming media came out in the first place.

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#2163162 18-Jan-2019 13:32

gehenna:

The good thing is that you can just sign up to these services for the duration of your viewing of a specific thing you want to view. E.G. I can sign up to Amazon Prime for a month to binge The Man in the High Castle, then the next month cancel or pause the subscription and go to Netflix to watch Daredevil, and so on. The flexibility multiple services offers to customers is great. You don't necessarily have to be signed up to multiple services concurrently. Maybe if you want to watch 2-3 different shows a night that are only on disparate services, but if that's the case and you're not willing to pay for multiple services concurrently you have the option of modifying your viewing habits - as we all did when streaming media came out in the first place.

And if people do modify their viewing behaviour in such a way then the value of a subscriber goes from $180/pa to $30-45/pa. How sustainable is the business model then? Having 60m subs paying $45/pa is a very different economic proposition to 60m subs paying $180/pa. As tdgeek mentioned - will we see a move to contract subscriptions? Or would we see prices increase substantially to compensate such that the average annual revenue of a subscriber generates enough return on capital?

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#2163164 18-Jan-2019 13:33

Strongly doubt it

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#2163168 18-Jan-2019 13:39

It was suggested, some time ago, potentially by greedy people, that the true cost of running the likes of HBO, is greater than private individuals would want to pay, to watch Game of Thrones ad free. I wonder how much merit there is in that claim, and if this is the challenge we see with Netflix, solely looking to subscribers to also fund their production costs, or would we prefer they offered ads, to assist in meeting these needs. Game of Thrones syndication would be worth plenty to HBO, and TV Networks afford this, by having advertising to fill their budgets, as well as subscribers in some cases. How much are you willing to pay for NF w/ ads and w/o ads, is that a pricing tier that they need to look at to alleviate some of the concerns discussed here.

SkyTV used to be ad free, now it seems like they have entire channels of adverts. And have been steadily increasing costs (until recently?).

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#2163183 18-Jan-2019 13:41

gehenna:

The good thing is that you can just sign up to these services for the duration of your viewing of a specific thing you want to view. E.G. I can sign up to Amazon Prime for a month to binge The Man in the High Castle, then the next month cancel or pause the subscription and go to Netflix to watch Daredevil, and so on. The flexibility multiple services offers to customers is great. You don't necessarily have to be signed up to multiple services concurrently. Maybe if you want to watch 2-3 different shows a night that are only on disparate services, but if that's the case and you're not willing to pay for multiple services concurrently you have the option of modifying your viewing habits - as we all did when streaming media came out in the first place.

You are keen, managing each subscription in that way. Not a bad way of doing it for those who can plan it in such a way, probably doesn't take much?

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gehenna

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#2163185 18-Jan-2019 13:43

I don't do it like that, I'm just making the point that people have options.

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#2163189 18-Jan-2019 13:50

Netflix doesn't have any production costs

At the cheap as chips price its always been, they still lost money. I think now its possibly just in the black in last year or so? Up the price $5 or $10 per month and the business is sorted for the future. Same would apply to the other competitors I would imagine. As @networkn stated earlier a 30 dollar price seems possible, and I see that as fair. USD or NZD, around there anyway. $30 to watch unlimited movies and TV, with some brand new hot exclusives? Sounds a cracker deal to me

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#2163195 18-Jan-2019 13:53

gehenna:

The good thing is that you can just sign up to these services for the duration of your viewing of a specific thing you want to view. E.G. I can sign up to Amazon Prime for a month to binge The Man in the High Castle, then the next month cancel or pause the subscription and go to Netflix to watch Daredevil, and so on. The flexibility multiple services offers to customers is great. You don't necessarily have to be signed up to multiple services concurrently. Maybe if you want to watch 2-3 different shows a night that are only on disparate services, but if that's the case and you're not willing to pay for multiple services concurrently you have the option of modifying your viewing habits - as we all did when streaming media came out in the first place.

Seems similar to wen people wanted to watch Sky, and instead of paying a monthly sub, buy this ep, that ep, that program on an individual basis. Sky couldn't work with users buying $8 or $16 or $27 per month of content. I doubt any SVOD could work if users could pop on and off at less than $1 per day. If a user would normally pay 12 x $20, but then they started paying 3 x $20 that doesnt work, as the costs to provide are unchanged.

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#2163207 18-Jan-2019 14:06

NzBeagle:

It was suggested, some time ago, potentially by greedy people, that the true cost of running the likes of HBO, is greater than private individuals would want to pay, to watch Game of Thrones ad free. I wonder how much merit there is in that claim, and if this is the challenge we see with Netflix, solely looking to subscribers to also fund their production costs, or would we prefer they offered ads, to assist in meeting these needs. Game of Thrones syndication would be worth plenty to HBO, and TV Networks afford this, by having advertising to fill their budgets, as well as subscribers in some cases. How much are you willing to pay for NF w/ ads and w/o ads, is that a pricing tier that they need to look at to alleviate some of the concerns discussed here.

SkyTV used to be ad free, now it seems like they have entire channels of adverts. And have been steadily increasing costs (until recently?).

You mean like Hulu and Hulu plus before they dropped the plus. $8/mth for ads, 50% more for ad free? Would be interesting to know the difference in subs levels on the two products. And vs Hulu+Live. Has there ever been a breakdown across the plans? Isnt TVNZ considering this idea for TVNZOnDemand - ad free for a subscription?

Netflix will start slow - probably just promo's on a pre/post roll basis. Teasers for upcoming shows to keep you subscribed for longer rather than churning. Imagine if someone like NatGeo or Discovery kept inserting promos for its shows - how annoying. Surely you'd pay 50% more to not have that occurring. And then inevitably the FMCG brands will offer big bucks to be associated with a show and want an pre-roll for sponsorship. And finally the TVC's at natural pauses in the shows. The content is exclusive so there is no where else to watch the content that you crave so you're beholden to Netflix inserting TVC's. And as its streamed there is no limit on the number of minutes of advertising in 1 hour! An ad-agencies dream.

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