Why NetFlix is Still the Best Bargain Around

Many people are complaining about NetFlix upping their prices from $10 a month to a stunning $16 a month.  OMG!!!

Yes, that was sarcastic.  Netflix is still, by far, the best bargain around.

I’ve heard (and good luck verifying this) that the average TV 1-hour drama show costs 1.5 to 2 million per episode.  And up to several hundred million for the most expensive movies.

Sure movies get theater time, TV shows don’t.  They have commercials and product placement and that’s about it.  The mere fact that NetFlix can get any of these shows and only charge $16 a month is stunning.

In April Netflix announced 23 million subscribers.  If each is paying $10, that’s only 230 million a month or about 2.3 billion a year.

That’s the cost of about 1-3 new movies a month OR 10-15 TV episodes per month.

OK, netflix doesn’t have first run stuff.  Fine, it’s still a bargain.

At Amazon you can get some first run TV shows for $1.99 per episode.  First run movie rentals are $4 and purchases are $14 or so.  If you can be patient, then Netflix is still a huge bargain.

So far this month, I’ve watched all of season four and half of season 5 of SG-1.  That would cost me about $40 in DVDs (or over a $1000 in cable bills for that year and a half).  I’ve also watched (or my son has) about 20 hours worth of Bob the Builder (at $5 per DVD).  A couple dozen episodes of Top Gear and a few movies.

HUGE Bargain… if you can afford to be patient.

The costs associated with satellite and cable companies are almost purely for convenience.  You guys are paying first run prices.  I’m paying $1 theater prices and will see the same show… just a few months (or a year) behind you.  I pay $16 a month, you pay $130 a month.  It’s all for the chance of getting first run stuff.  Of course, you can also pay $12 a  pop at the theater for the movies too, I guess.

On the other hand, if people aren’t paying premium prices for first run stuff, then I’d have to pay more for much delayed stuff.

So thanks to all you impatient people who have to watch Avatar 30 times in the theater.

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One Response to Why NetFlix is Still the Best Bargain Around

  1. Jen says:

    In our house Netflix has almost completely superseded regular television. The smaller children are enjoying shows that I watched as a child and tween, in addition to current shows, and the older ones entertain themselves with campy movies, current network shows (like Bones from Ep 1.1, or other things), and anime. Things that would cost me a frikkin’ arm and a leg if I were to buy on disc. Even raising the price wasn’t horrible. We went from $14 and change to roughly $20. Definitely worth it, considering if I were to use pay per view, or Redbox, I would spend WAY more than an extra $6/month.

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