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SAN FRANCISCO (AP) — The toughest choice most Netflix customers
usually face is figuring out which movie to put at the top of their
queues.
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But millions of Netflix subscribers will be wrestling with a new
dilemma as they decide how to respond to price changes that will
hit the video service’s existing customers beginning
Thursday.
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The new system will impose substantially higher rates on customers
who want to keep renting DVDs through the mail and enjoying the
more immediate gratification of streaming video over high-speed
Internet connections.
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A small number of Netflix Inc.’s nearly 25 million U.S. subscribers
will be unaffected because they had already limited their usage to
Internet video streaming. Others will have to pay as much as 60
percent more unless they are prepared to wean themselves from one
of Netflix’s entertainment options or just close their service
entirely.
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Here’s a few factors for Netflix subscribers to
consider:
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– Find out which day of the month Netflix bills you.
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Click “Your Account & Help” on the top right, then look for the
next billing date in the center. That is when the new rates take
effect. For example, if Netflix doesn’t charge you until the 22nd
of each month, you still have another three weeks before being
charged more to have both DVD rentals and Internet video. If you
usually get billed on the second day of each month, you will need
to make a change promptly to avoid being charged more.
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– Know the new prices.
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For the first time since it introduced Internet streaming in 2007,
Netflix is offering DVD-only plans. For $8 per month, customers can
rent an unlimited number of DVDs per month, with a maximum of one
disc out per time. DVD-only plans allowing two discs out at time
will cost $12 per month and three DVDs at a time will go for $16
per month.
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The cheapest package that combines Internet video and DVD rentals
(one disc at a time) will cost $16 per month – up from $10 per
month under the old system.
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The price for an Internet-streaming only plan remains $8 per
month.
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– If you’re among the customers who want to keep just one of
Netflix’s entertainment options, assess what you like to watch on
the service and how you watch it.
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Internet streaming is more convenient because there’s no waiting
for video to be delivered by the U.S. postal system. It also
enables viewing on personal computers, tablet computers and phones,
besides television sets. The negatives: It requires high-speed
Internet access, which isn’t cheap, and Netflix’s streaming library
is about one-fifth the size of the 100,000 selections in the DVD
section.
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DVDs remain the best way to see the latest movies after they have
ended their run in theaters. In some cases, Netflix must wait four
weeks after DVDs go on sale in stores before they can mail them to
customers, but that’s far better than Internet streaming where the
wait can last several years.
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Internet streaming is better for watching good documentaries (which
sometimes are available at the same time as the DVDs), catching up
on past seasons of TV shows and enjoying older movies.
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If you like to watch series such as “The Wire” and “Curb Your
Enthusiasm” that have previously been shown on HBO, stick with DVDs
because those titles have never shown up in Netflix’s streaming
library.
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– Before abandoning Internet streaming, remember it is probably
going to keep getting better because it is Netflix’s top priority.
Netflix has left no doubt that it intends to spend big bucks to
make its streaming library more compelling. The company already has
secured the exclusive rights to a series starring Academy
Award-winning actor Kevin Spacey. That series, “House of Cards,”
initially will be available late next year only to Netflix’s
streaming customers.
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– Keep some perspective. Sure, a 60 percent increase sounds
outrageous, but it’s only $6 more per month to have your DVDs and
Internet video, too. Most people could cover that cost by cutting
out one or two visits to Starbucks or some other store each
month.
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