Netflix Increases Stock and Prices

The mad dash to return videos on time ended with the advent of Netflix Inc. The $3.49 (more or less) for a three day rental of a new release, at the local video store, was eradicated with an $8.99 monthly fee, which guaranteed no late charges.

The concept was genius in the making. Give the consumer what they want at a price they can afford and sales go through the roof. November 2010 found the company boasting over 16 million customers across North America. That number is rising daily.

Netflix Inc. stock is also on the rise, with the announcement of steaming video and increased fees for customers still ordering DVDs through the mail. The company website showed the stock rose by over 15 points when the market closed on Monday, November 22, 2010. This upswing coming on the same day as the new plan and rate increase announcement.

New customers pay $7.99 to view movies on their home computer, wii, PlayStation 3 and other devices. For those still wanting to receive videos in the mail, the fee increases to $9.99. Current customers can expect an increase in their January 2011 bill. While the company must make money to stay in business, there are a few downsides to this new plan.

Entire communities must suffer higher fees for living in rural areas. Households without streaming Internet connections must pay the increased fee or go back to using the local video store. The other alternative is Blockbuster Express, offering new releases for $1 per night; no accounts required. A family watching only four or five movies per month may find the alternatives less expensive than Netflix Inc.'s new plan.

But that is so 2010. Skip ahead to 2015 when the the FCC rules the Internet, promoting open usage and net neutrality. Broadband companies supply every household with high-speed capabilities and there are no blocks on competitive websites. Phones and televisions, once a part of every household, are a thing of the past. The news, music and your child's teacher stream through the wide-screen monitor. Recipes are a keystroke and a click away. Don't want to cook? Click on the local pizzeria website and order your favorite toppings, pay through Pay Pal and have the pie delivered. When the car refuses to start in the morning, plug the usb cable into your iFix to give remote access to your mechanic, who uploads a "Hot Fix" key. Later, as your model SL Chrys-olet hovers in the parking lot, you pick up...what?..too much?

All right, back to 2010 where not every household has access to the Internet through satellite or dsl. There are still areas where dial-up reigns supreme. You look shocked. Don't be. Only 30% of households world-wide have broadband access, according to statistics released by International Telecommunication Union. The U.S. Census Bureau released 2009 statistics which revealed less than 69% of American households had Internet access.

Congress was in a deadlock in September of 2010 over a bill presented by the FCC, which would have started a movement towards supplying broadband to every home. Failing to reach an agreement, rural communities still suffer from slow baud rates, the lack of streaming video and, as an added bonus, the increase in their Netflix bill.