Netflix price increase…good or bad thing?

A price increase is always a bad thing for consumers especially when it is going up 60% for some Netflix users.  I’m paying more and don’t like it but haven’t forgot paying $20/mo for the same service years ago and this was the mail order only.  No streaming back then.

So why is Netflix doing this anyway?  I’ve seen polls as high as 50% of current Netflix users are threating to disconnect.  The first reason why Netflix is raising rates is because of the cost of content.  According to Merriman Holdings research, Netflix paid 600 millions dollars for content last year and the cost is rising.  So to some extent, Netflix is getting much of blame for content owners raising their rates on Netflix.  

A second reason Netflix is increasing rates is due to its streaming only push.  Let’s not forget that the streaming only plan will still remain at $8/mo.  But 90% of Netflix subscribers use the streaming plus 1 or 2 DVDs out at a time.  Netflix wants more on the streaming only and less on the streaming plus DVD mailers making their company much more profitable.  Like it is doing globally.  I speculate that this free up in expense will be reinvested in content effectively allowing Netflix to enhance their streaming content which is good for end users like you and me.  (long term)

I believe this price increase will do short term harm to Netflix but have long term gain for the company.  This will make Netflix an even more viable online service for the long haul.  While I don’t like paying more starting this September, I’m glad to do so as the service is still a bargain.  Right now, I look forward to seeing Netflix enhance their streaming library.

Prediction:  Once the media hysteria calms down, Netflix will make a come back.  

Manage Netflix Video Quality

Have you logged into your Netflix account lately?  Even if you have you may not have noticed a new option called "Manage Video Quality".  Simply log in, go to your account, and you'll see this link under 'watching instantly on your TV or Computer'. 

The purpose of the 3 settings (Good, Better, Best) is to prevent a Internet subscriber from going over a limit (cap) which could cause some overage fees from ISPs like Charter or Comcast.  Today, RTC Internet does not have any caps and is truly an unlimited service provider.  Another reason to lower video quality is if you have multiple Internet devices in the home all competing against a low bandwidth connection.  If un-managed, Netflix is going to stream the video at the fastest rate (highest quality) as possible potentially slowing down other devices in the home.  So this tool could be used to manage a low speed connect.  Ideally, you would be better off calling to upgrade your speed.

Online TV discovery for iPad users

"As seen in the New York Times, Wall Street Journal, and TechCrunch: Fanhattan is your starting point for entertainment discovery on the iPad across Netflix, Hulu Plus, iTunes, and ABC.

Find Movies and TV shows (top hits to Hollywood classics) from across the most popular digital media services. Browse related content including reviews from Rotten Tomatoes and Metacritic, ratings, trailers, actor and crew bios, soundtracks, fan gear, and more. Choose how you want to watch your entertainment -- rent, buy, or subscribe -- and begin watching with a single click.

Fanhattan is your starting point for simplifying entertainment discovery across an increasing number of digital on demand services"

http://itunes.apple.com/us/app/fanhattan-for-ipad/id436928538?mt=8

Google buys Sage TV.

http://news.yahoo.com/s/digitaltrends/20110618/tc_digitaltrends/googlebuysdvrcompanysagetvgoogletvupgradecoming

What is “TV Everywhere”?

Just as the name suggests, TV everywhere is taking all your favorite TV shows with you wherever you go.  This is an evolution of multi room DVR except TV everywhere takes this one step further….out of the home.  So how is this done?  

Simply put, the Internet and a mobile display device such as a smart phone or laptop.  For example, with Dish Network, a sling box hooks up to your set top box.  It takes the TV shows you watch and streams it over the Internet.  Your internet connected device then displays the show on the go.  Remind you of anything?

Yep, this is Internet TV.  This is recognition that traditional cable companies are listening to their consumers and they should.  Netflix surpassed Comcast as the largest video subscription service (cable company) in the U.S.  This occurred not only because of content and aggressive pricing but convenience as well.  I can watch Netflix anywhere I have an Internet connection.  Dish and Cable see the trend and are reacting to it.  At a recent Industry conference (Elevate 2011), it was estimated that about 75% of cable programming will be available on connected mobile devices within 2 years.

This is a massive trend that will affect all of us and the Internet as we know it today.

"Crackle – It’s on"….the Roku and FREE!

Netflix and Hulu Plus are great bargains at $8/mo.  Yet with Crackle, you just can’t beat FREE!  Crackle features full length TV shows and movies and can stream directly to your TV set via the Roku box.  I watched the old 80’s movie “The Last Dragon” a few days ago with excellent results.  Every 20 minutes or so a short commercial would run then back to the movie.  The ad breaks were not as intrusive as you would think.  Very short and not that annoying.  Heck, it is free be patient. 

If you already have a Roku, Boxee, Google TV, or Tivo Premier, I encourage you to check it out.  Or simply go to http://www.crackle.com and watch straight from your PC or Mac.

Committed to Internet TV down with the Dish

Thinking my ‘honey do’ list was way too short this weekend,  My better half asked if I could take the ugly dish off the house.  I resisted for reasons beyond just sheer laziness.   “Is it worth anything?”  “No” I replied.  “Are we ever going to sign up for DirecTV again?” “Well…..no” I reluctantly replied.  “So there is trash on the side of the house!” She cleverly suggested.  So, the dish came down this weekend and into the trash.  This means we are 100% committed to Internet TV and over the air broadcasts.    

Another Internet TV box gets Hulu this week.  The Tivo Premier.  http://gizmodo.com/5804502/yep-hulu-plus-is-now-on-tivo-premiere