Netflix losing appeal, subscribers

“It’s been great, but it’s over. It’s not us, it’s you. Enjoy the bankruptcy,” wrote an ex-customer named Adam Lundquist on Netflix’s blog.

A few years ago, Netflix seemed to be an up-andcomer in the movie-rental industry. Now, with all of the changes the company has been forced to make, it would be a surprise to see the company last any longer than three years.

Netflix used to be cheap, in a good way. For $9.99, a subscriber could play multiple movies through a video game system, a computer or even a smart phone, all while having movies sent to them by mail. They were even able to watch through multiple wireless devices such as a smart phone or a Wii gaming system.

But in July, the plan was raised to $15.98 per month, according to Netflix’s blog. Then on Sept.
1, Netflix started restricting how many devices can stream movies or TV shows through one account.

Now, only one movie can be streamed from one account at a time between all devices. Netflix customers across the nation are paying more money to watch fewer movies and TV shows.

When Netflix began, it was essentially the only game in town. Yes, there were other companies like Blockbuster and Hollywood Video, but nothing quite like Netflix.

Because of this, Netflix was able to secure deals with movie companies that would allow them to
stream movies at a low price.

Now, there are other similar services such as Blockbuster Total Access and Hulu. With these other services now offered, companies that grant Netflix the rights to stream their movies have some leverage, and are taking advantage of it.

Licensing costs are expected to increase from $1.3 billion to $1.4 billion next year, said Arash Amel, a research director at IHS Screen Digest.

So, although the costs have already risen, they will most likely continue to rise as these contracts expire.

The amount of movies that can be watched instantly is shrinking, despite the fact that Netflix already spent nearly $600 million this year trying to build up the library, stated Associated Press Business Writer Chip Cutter.

Pauline Fischer, Vice President of Content Acquisition, wrote that, “Sony movies through StarzPlay are not currently available to watch instantly” on Netflix’s blog. This issue continues to be unresolved. And investors in the company stock are starting to notice this downhill progression.

In the past 53 weeks, Netflix’s price-per-stock has fallen from $304.79 to $107.63, according to

Netflix had a good idea, and was making strides for a while, but money took over. Netflix and other companies realized profits could possibly increase with some changes.

Unfortunately, subscribers who began Netflix’s service, such as myself, are also tuned in to how much bang they get for their buck, and are realizing that this bang just isn’t big enough anymore.