4 ms·

netflix keeps increasing prices, you can say that they increase price, because their value to average customer increases.

by genbit 8y ago

partiallypro 8y ago
Their latest price increase is undoubtedly because their cash burn is really really high. Even despite their increase in prices they noted their burn rate would remain the same...which means they are spending a lot of money content.
- xiphias2 8y ago
  At least I see some interesting new original content now. I wish they would try to create less, but more expensive content. The superhero series are for example boring for me because they are cheaply produced (I usually watch them _just_ because of the animations).
  - mavhc 8y ago
    Which superhero series? I wonder how long a show is worth something to them? In a decade they'll have 1000 series, can they slow down making shows then? Or do they need to make 5 hours of new tv every day forever? Does a 10 year old show attract customers?
    - janekm 8y ago
      My impression is that the "water cooler" effect is still very important for Netflix. "Hey, have you seen that new X show on Netflix with actress Y? Oh, you don't have Netflix? Let me send you an invite!"
      - whywhywhywhy 8y ago
        It’s not even water cooler anymore it’s a Netflix monoculture. Look at your twitter feed when Netflix releases something successful. It’s actually a bit scary how it’s the only thing so many people are consuming
    - TeMPOraL 8y ago
      > Does a 10 year old show attract customers? Let me put it like this: I'd happily double my subscription payments (and I'm on the max tier already) if they offered the entire Babylon 5 series, just to show my support. Hell, the only reason I started using Netflix in the first place is because they had all Star Trek TV shows, including the remastered version of TNG. I also know I'm not the only one in my circle of friends who started using Netflix because of Star Trek, and who would fork extra money for some 80s/90s sci-fi shows, just to show their support.
      - johnny22 8y ago
        thing is, that's the sort of thing that the original IP owners are trying to put on their own subscription services. I expect you'll end up finding them somewhere that's not Netflix. That's why Netflix is spending all this money for original content. They don't wanna be left with nothing as warner brothers, NBC universal, disney, etc all launch their own streaming services.
        TeMPOraL 8y ago
        Yeah, I know. There's an ongoing process of balkanization of video streaming that started recently. I just hope all those IP owners get what's coming to them for this failure to cooperate - namely, that all those HD streams get ripped and put on torrents, where people who don't have patience for this bullshit will be looking for them now.
    - matwood 8y ago
      > Does a 10 year old show attract customers? Yes. We have entered a time where there is so much content no one can watch it all when it comes out. I routinely find older shows on Netflix/Prime (either original or network) that I missed when they came out. If I only watch TV for 1-2 hours/day, I now have weeks-months of content. Same thing with movies. I just watched the new Han Solo movie on Netflix. It was decent, but I would not have ever watched it other than possibly on a flight.
  - philliphaydon 8y ago
    Which Netflix originals superhero is cheaply produced?
- Godel_unicode 8y ago
  Except if their increased value to the customer didn't give them this pricing power, you would expect increased prices to cause an overall drop in prices. Prices are more about what the market will pay than about what a company needs to charge.
  - partiallypro 8y ago
    Netflix understand market elasticity, but that doesn't mean they didn't up the price so they could create more content.
eeeeeeeeeeeee 8y ago
It’s because one of their primary metrics is hours viewed. Netflix needs you constantly watching hours and hours of content so you feel you’re getting “value” and don’t cancel. To do all of this, they constantly need to be financing new content, despite the fact that a lot of it isn’t very good.

netflix keeps increasing prices, you can say that they increase price, because their value to average customer increases.

by genbit 8y ago

netflix keeps increasing prices, you can say that they increase price, because their value to average customer increases.

partiallypro 8y ago

Their latest price increase is undoubtedly because their cash burn is really really high. Even despite their increase in prices they noted their burn rate would remain the same...which means they are spending a lot of money content.

xiphias2 8y ago
At least I see some interesting new original content now. I wish they would try to create less, but more expensive content. The superhero series are for example boring for me because they are cheaply produced (I usually watch them _just_ because of the animations).
- mavhc 8y ago
  Which superhero series? I wonder how long a show is worth something to them? In a decade they'll have 1000 series, can they slow down making shows then? Or do they need to make 5 hours of new tv every day forever? Does a 10 year old show attract customers?
  - janekm 8y ago
    My impression is that the "water cooler" effect is still very important for Netflix. "Hey, have you seen that new X show on Netflix with actress Y? Oh, you don't have Netflix? Let me send you an invite!"
    - whywhywhywhy 8y ago
      It’s not even water cooler anymore it’s a Netflix monoculture. Look at your twitter feed when Netflix releases something successful. It’s actually a bit scary how it’s the only thing so many people are consuming
  - TeMPOraL 8y ago
    > Does a 10 year old show attract customers? Let me put it like this: I'd happily double my subscription payments (and I'm on the max tier already) if they offered the entire Babylon 5 series, just to show my support. Hell, the only reason I started using Netflix in the first place is because they had all Star Trek TV shows, including the remastered version of TNG. I also know I'm not the only one in my circle of friends who started using Netflix because of Star Trek, and who would fork extra money for some 80s/90s sci-fi shows, just to show their support.
    - johnny22 8y ago
      thing is, that's the sort of thing that the original IP owners are trying to put on their own subscription services. I expect you'll end up finding them somewhere that's not Netflix. That's why Netflix is spending all this money for original content. They don't wanna be left with nothing as warner brothers, NBC universal, disney, etc all launch their own streaming services.
      - TeMPOraL 8y ago
        Yeah, I know. There's an ongoing process of balkanization of video streaming that started recently. I just hope all those IP owners get what's coming to them for this failure to cooperate - namely, that all those HD streams get ripped and put on torrents, where people who don't have patience for this bullshit will be looking for them now.
  - matwood 8y ago
    > Does a 10 year old show attract customers? Yes. We have entered a time where there is so much content no one can watch it all when it comes out. I routinely find older shows on Netflix/Prime (either original or network) that I missed when they came out. If I only watch TV for 1-2 hours/day, I now have weeks-months of content. Same thing with movies. I just watched the new Han Solo movie on Netflix. It was decent, but I would not have ever watched it other than possibly on a flight.
- philliphaydon 8y ago
  Which Netflix originals superhero is cheaply produced?
Godel_unicode 8y ago
Except if their increased value to the customer didn't give them this pricing power, you would expect increased prices to cause an overall drop in prices. Prices are more about what the market will pay than about what a company needs to charge.
- partiallypro 8y ago
  Netflix understand market elasticity, but that doesn't mean they didn't up the price so they could create more content.

eeeeeeeeeeeee 8y ago

It’s because one of their primary metrics is hours viewed. Netflix needs you constantly watching hours and hours of content so you feel you’re getting “value” and don’t cancel. To do all of this, they constantly need to be financing new content, despite the fact that a lot of it isn’t very good.