Netflix pricing to increase in NZ by upto 19%

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#2287329 1-Aug-2019 18:19

dafman:
Dial111: Sure I was happy to pay $18.50 for the privilege of having 4K content, even if it is very limited for my tastes, but $22 for much of the same, I think I’ll jump down a tier before I’m charged the new price, I’ve got a month to go.
Many years ago, two new release movies from Video Ezy for a Saturday night's viewing cost $24. Now $22 for a month's unlimited viewing is stretch. Funny ol' world.

Yep

Then you get non release movies for a week, a small bunch for $10. What you could binge now in a night (long night). Yet $10 is half 30 days Netflix

Dial111

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#2287333 1-Aug-2019 18:37

dafman:
Dial111: Sure I was happy to pay $18.50 for the privilege of having 4K content, even if it is very limited for my tastes, but $22 for much of the same, I think I’ll jump down a tier before I’m charged the new price, I’ve got a month to go.

Many years ago, two new release movies from Video Ezy for a Saturday night's viewing cost $24. Now $22 for a month's unlimited viewing is stretch. Funny ol' world.

$7 a new release in my time and that was bluray, for the same $ on Apple TV I can get new released 4K movies.

I’ve watched almost everything I like in 4K already, no point paying more for the same when I’m happy to downgrade and watch the same stuff but in 1080p. I’m still a subscriber but in full HD I can’t see the problem.

old3eyes

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#2287337 1-Aug-2019 18:42

tripp:
dafman: So instead of being 50 times cheaper than Sky, after the increase Netflix will only be 49.97586 times cheaper than Sky. (Ok, I didn't really do the calc. My point being that even after the increase, Netflix remains outstanding value for money when compared against our local dinosaur).

Unless you want new released movies or tv shows (excluding netflix original)

That's why I use Amazon video way more than Netflix.

Regards,

Old3eyes

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#2287421 2-Aug-2019 00:15

tdgeek:
Quote

logged profit of $134 million on revenue of $4.2 billion in the final three months of last year.

That compared with a profit of $186 million on revenue of $3.3 billion in the same period the prior year.

Netflix ended the year with 139 million paying members worldwide, up 29 million from the start of the year. end of Quote

https://phys.org/news/2019-01-netflix-profits.html

I dont see where burning through billions of cash per annum comes from. Margins are slipping as the article mentions, but they are making money

the link to the article isnt working for me, but i dont think Netflix have ever made a profit from streaming.
They borrow Billions of dollars every year. This year they estimated they would need to borrow 2.5 billion but have ended up needing to borrow 3 billion dollars.

They borrow money based on subscriber growth hense why isp's/telco's have deals to offer their customers free subs as it raises subscriber growth.

Problem now is subscriber growth isnt as much this year as they hoped and will get worse once Disney etc start streaming services.

*Edited as I forgot spotify finally made a profit this year.

rugrat

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#2287433 2-Aug-2019 02:10

dafman:
Dial111: Sure I was happy to pay $18.50 for the privilege of having 4K content, even if it is very limited for my tastes, but $22 for much of the same, I think I’ll jump down a tier before I’m charged the new price, I’ve got a month to go.
Many years ago, two new release movies from Video Ezy for a Saturday night's viewing cost $24. Now $22 for a month's unlimited viewing is stretch. Funny ol' world.

People will be purchasing content from more then one provider now, so adds up.

Outside Netflix originals theres not much in 4k, so when watching one of those programs are paying for something that is not improving that program, example the movie IT. Netflix has it in HD but there is a 4k version of it available. Also Netflix is losing some third party content e.g the marvel stuff.

I've watched a couple of Netflix original movies and didn't make it to the end of either of them Annihilation, and Western with Adam Sandler.

Prime Video is under $10.00 at moment, less content then Netflix but enough to keep me happy and they include some 4k content in that price.

Plus more percentage of their originals may be to my taste, time will tell.

jonathan18

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#2287568 2-Aug-2019 10:55

Apparently 40% of Netflix's 'top movies and shows' are Disney-owned titles - in the end I imagine that, as its contracts for this content come up for renewal and Disney's own VOD service is up and running, little of this will remain on Netflix. That's quite a hole to fill, and is likely to make the value proposition of Netflix more difficult to justify in the future.

Unlike others here, I can't be bothered pausing my Netflix sub for periods and then restarting it - given my wife and kids watch their own content there's always someone watching something Netflix, and if I divide that sub cost per person it's currently 86c per person per week, rising to 98c with the increase.

I've also been slightly underwhelmed by (NZ) Prime Video - a few shows are excellent (Mrs Maisel; enjoying The Boys), but others are more pedestrian and not typically of the same quality Netflix original content often delivers (I can't imagine Goliath - a good concept, but far too 'network TV' in its execution - being made like that by Netflix). I'm happy to have Prime for free as part of my 2D BB, but can't imagine I'd pay for it, and certainly not as a substitute for Netflix.

Here's hoping that HBO launches a world-wide VOD service, and in NZ becomes free from the shackles of Sky. Ideally this wouldn't be solely SVOD, but for the purchase of specific shows.

loceff13

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#2287904 2-Aug-2019 23:26

If you look at the amount of content Netflix is putting out right now and the next 2-3 years and they will be the best VOD selection by miles for new programming compared to say Disney or HBO, both having a business model of licensing their content to other networks globally(disney+ might be big in the states but will be rubbish here with the existing rights packaging of content to tvnz/mediaworks/sky).

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hypnotoad

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#2289313 3-Aug-2019 20:16

loceff13:
If you look at the amount of content Netflix is putting out right now and the next 2-3 years and they will be the best VOD selection by miles for new programming compared to say Disney or HBO, both having a business model of licensing their content to other networks globally(disney+ might be big in the states but will be rubbish here with the existing rights packaging of content to tvnz/mediaworks/sky).

Disney just broke box office records with the last Avengers movie. I dont think they are getting into streaming to make a lot of money from it, more to stop Netflix from having a monopoly.

I guess how much more content Netflix will release over the next 2-3 years depends on how much money they are able to borrow.

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#2289362 3-Aug-2019 22:35

ockel:

MikeB4:

tdgeek:

Quote

logged profit of $134 million on revenue of $4.2 billion in the final three months of last year.

That compared with a profit of $186 million on revenue of $3.3 billion in the same period the prior year.

Netflix ended the year with 139 million paying members worldwide, up 29 million from the start of the year. end of Quote

https://phys.org/news/2019-01-netflix-profits.html

I dont see where burning through billions of cash per annum comes from. Margins are slipping as the article mentions, but they are making money

The Netflix net income for fiscal 2018 was $US1.2 billion from $US15.74 billion revenue.

And the key statement to look at is the Cashflow Statement. Like most entertainment companies Netflix pay cash for content but then can smortise this cost over a period to time to reflect the value that the content is watched. The assumptions that it makes about the amortisation period can greatly effect the reported accounting profit. So the P&L needs to be taken with a grain of salt - the key to understanding most corporate profits is actually in the financial footnotes in quarterly and annual filings.

Importantly the operating cashflows remain in deficit. In each quarter. And then deduct the investing cashflows and you start to get an idea of how much cash Netflix needs to continue to raise (either through debt or equity) to continue trading.

Well said.

Cash flow vs P&L statements.

For those that don't know the difference, P&L statements are what the tax department use to determine what the tax bill is. Cashflow statements show all movements of cash.

So CAPEX and loan principal repayments (amongs other things) don't appear on the P&L but they certainly come out of the bank account and show as cash going out of the business on the Cashflow statement.

Conversely depreciation appears on the P&L but not the cashflow statement.

Wish more business operators in N.Z. understood this. (source: I'm an commercial ex-banker)

gehenna

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#2289365 3-Aug-2019 22:48

I see this as Netflix trying to do a cash grab before Disney transitions the remainder of it's licenses to it's own platform, and a few of the other big studios do the same. I believe I heard that Paramount or Universal, or maybe both, have their own platforms in the works so that content will be leaving Netflix too. Pretty soon they'll have their own Originals content, and possibly still be able to license content from the other players but I imagine that will be at a higher cost to them than right now. Hopefully Disney+ will be global, they seem to own everything worthwhile now anyway.

tripp

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#2289406 4-Aug-2019 07:37

gehenna:

I see this as Netflix trying to do a cash grab before Disney transitions the remainder of it's licenses to it's own platform, and a few of the other big studios do the same. I believe I heard that Paramount or Universal, or maybe both, have their own platforms in the works so that content will be leaving Netflix too. Pretty soon they'll have their own Originals content, and possibly still be able to license content from the other players but I imagine that will be at a higher cost to them than right now. Hopefully Disney+ will be global, they seem to own everything worthwhile now anyway.

The rate this is all going I can see torrents becoming a hit again. People will not pay for 3 x streaming services, maybe 1 or 2 but not when we start to get to $60 a month again.

Talkiet

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#2289435 4-Aug-2019 09:35

As I have sarcastically asked before... "Wait, so monopoly providers are a good thing again? We want less choice and more 'channel' aggregation now?" That seems to be what you're asking for if you want fewer streaming services.

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

tdgeek

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#2289456 4-Aug-2019 11:12

Talkiet:

As I have sarcastically asked before... "Wait, so monopoly providers are a good thing again? We want less choice and more 'channel' aggregation now?" That seems to be what you're asking for if you want fewer streaming services.

N.

Yes, hate Sky as its a monopoly (it never was BTW) now we hate streaming cos its not a monopoly

SJB

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#2289557 4-Aug-2019 12:21

More content doesn't equal good content.

Netflix originals seem to be made to a formula and budget. After the first 5 minutes you know what you are going to get and you can normally predict the end. I've watched a few series that managed to hold me until the end but most of the movies I find boring and rarely finish. And the non-original movie offerings are pretty awful.

Maybe we just have too much to choose from these days and are too picky. I think I'm actually getting bored with TV.

steve98

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#2290097 5-Aug-2019 10:39

jonathan18:

Apparently 40% of Netflix's 'top movies and shows' are Disney-owned titles - in the end I imagine that, as its contracts for this content come up for renewal and Disney's own VOD service is up and running, little of this will remain on Netflix.

There is very little if any Disney content on the NZ Netflix. The stat you're quoting here would relate to the US Netflix.

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