Netflix: To Keep or Not To Keep?
We’ve been Netflix* customers on and off for the last 3-4 years, alternating with Blockbuster Online when certain deals come along, or nothing at all during the regular TV season. Right now, we’re back with Netflix mainly because Blockbuster has proven itself unworthy through late deliveries and sending random movies from our queue (even though the top movies are listed as available). But with my classes starting back up and the TV season back in full gear, we’re deciding whether we want to keep Netflix or not.
Costs and Benefits of Netflix
We’ve reduced down to 2 movies a month ($14.83/mth after taxes) from three, and we’re going through about 4-6 movies in a good month. Looking at those numbers, we’re only doing marginally better than just renting directly from a Blockbuster store. But Netflix offers a much wider range of movies AND TV shows from its online catalog than a Blockbuster store could ever offer. If we hear about a good classic movie and want to rent it, good luck finding it at Blockbuster.
Another benefit of Netflix is not having to leave the house, except to check the mail. Granted, the negative is having to wait for the movie to get back to Netflix and wait for the next one. Turnaround time is usually 3 days (Day 1, mail out. Day 2, Netflix confirms receipt. Day 3, get new movie).
Netflix Versus Nothing
So the first decision is whether we want to ditch Netflix entirely and not pick up any other movie service. As I’ve mentioned, Blockbuster sucks, and there’s really no other competitor in the market (wait, wait, I’ll get to Redbox in a moment). Also, as I’ve mentioned, we have more than enough to watch on TV and to keep us busy right now (school for me at least), so movies are a less-needed form of entertainment right now.
Savings: $14.83 per month
Netflix Versus Redbox
While we could probably do fine without renting movies, there are some new releases we would like to watch. There’s a blockbuster in walking distance to our home, but movies cost over $4 a pop there. In the same plaza, there’s a Redbox movie kiosk. If you’re not aware of Redbox, it’s a kiosk with a few dozen movies inside for $1 per night. There’s no subscription required and you’re just charged for the nights you keep the movie.
Oh wait, we already canceled a movie service in favor of Redbox back in 2007: “Blockbuster vs Redbox“.
If we were to rent the 4-6 movies per month that we’re currently doing, and returning the movies the next day:
Savings: $8.83-10.83 per month
Netflix Versus Library
I know I would get hounded if I didn’t mention the library as an option for renting movies. The movies are free, but in exchange, you have a limited selection and have to wait for new releases to make it to the shelves. You can request movies from other library branches (if your library system is large enough) and place a hold on a movie, but if you just want something to watch other than TV, you can pick from dozens of movies on the shelves (VHS and DVD formats).
I have a feeling if we chose this option, we probably would just go to Redbox and spend the $1 (since it’s more convenient) rather than borrow from the library. But at least I’m aware it’s an option for those times we go to the library to borrow books (about once a month).
Savings: $14.83 per month
Which Will We Choose?
I’ll admit that right now I think we’ve watched all the interesting movies in our queue (with 61 movies in the queue remaining, counting TV series), and we’re just keeping it because we just got billed for the next month. You can’t get a refund for a partial month, so if we canceled now, we’d be short-changing ourselves another 3 weeks of movies.
Most likely we’ll put our Netflix account on hold rather than completely cancel it, just so we can retain our ratings history and current queue, and then reassess the situation at the end of the semester.
Anyone else in this boat? Do you love or hate Netflix?
Try Netflix for Free for 14 days
As a note, if YOU would like to try Netflix, and haven’t had the service before, you can try Netflix for 14 days free*. You can cancel online very easily without having to call anyone (trust me, I’ve done it numerous times before).
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I’ve gone through this debate a few times myself. I love Netflix, especially if I’m watching a show all the way through to the end (The Wire, anyone?).
But I’m thinking I could probably do without. There is a redbox near me and they always have codes out there for free movies, so essentially you’re paying nothing to have a limited selection of movies, although they do have the newest ones usually.
Beats the library’s selection, that’s for sure.
It’s great that you have so many options in your area. I went to a Redbox for the first time a few weeks ago, and there wasn’t a single movie available that I’ve ever heard of. I don’t know if it’s like that all the time, but it didn’t seem too appealing to me. Plus our library charges something like $2 to rent DVDs (but video games are free… go figure). So we just stick with the 2-a-month Netflix since we’re used to it. Probably not the most frugal decision, but it makes us happy since we never go to the movie theater now.
Have you seen Feedflix.com? It helps analyze your Netflix usage and might help you with your decision.
You could also check out Hulu.com – free movies over the Internet! You just have to put up with ads during the movie. It’s kind of like watching a movie on network TV, except that you get to pick the movie and you get all the original content – no network censoring, cutting for time, etc.
Netflix is making huge strides right now! The HD Tivo boxes are now allowing you to get netflix movies directly to the box, as is new blue ray players and X box….Someday we’ll be looking to see if its even necessary to pay for cable with all the movies and TV shows you can get through Netflix. Especially if they can download instantly!
I love the library movies. Our library doesn’t charge (well, other than our taxes), so I always grab 3 movies on a Thursday after work (if you wait until Friday night or Saturday morning, the pickings are slim). I can keep them until Monday, so I drop them off in the box on the way to work. I’ve watched some bombs, but most of the time I’m happy enough with the selection. I also expanded my movie watching horizons (since it’s “free”) and watched some great foreign movies and independent movies that I’d otherwise never select.
I’ve done redbox a few times – but only with a free code.
We’re not huge movie watchers, but I’ve been debating whether or not to join Nextflix since I cut our cable to the package between basic and extended basic (no ESPN, no TBS, no FX, Foodtv; History channel yes, etc.)
To my pleasant surprise, our library system has quite a selection with an average delivery time of 4 days if the movie is not in-house. Of course, I still have to drop by to pick them up but it is no different than dropping by Blockbuster.
For now, we’re sticking with the library and free code Monday through Redbox.
i may be one of the few going in the opposite direction and considering starting a subscription with netflix. Recently the block busters in my area closed down, leaving the closest block buster/ movie rental location besides the library a 30 minute drive away. I can not see traveling 1 hour round trip with gas still some what expensive. For me the cost of netflix combined with its convenience far out weighs the alternatives i have.
@Jayme, I think Netflix use ebbs and flows with people’s lives. As activities increase outside of the home, people need movies less. For us, as I mentioned, we kind of got through all the movies we really wanted to see and will cut the subscription for a few months to let the queue build back up. We’ll re-evaluate in the summer when we tend to watch more movies at night.
I’m a big fan of RedBox. It seems like they are all over the place here in Houston, and there are a lot of free rental codes out there at any given time. There’s a site called insideredbox.com where the codes are listed, and you can even have RedBox text you a free rental code every Monday. And the codes are limited to one use per credit card, so if you have more than one card you can get multiple free rentals with the same code. As long as you return the DVD by 9pm the next night, you pay nothing! The only drawback is that selection is limited to new releases only, but you can’t beat it for the price.
We did the Netflix thing a while back but encountered the throttling issue (where they delay processing returns and shipments to customers turning around movies quickly) and cancelled. Also tried BlockBuster online, but their mail service was so slow and once they no longer did unlimited in-store exchanges it wasn’t worth dealing with. And I’m not going to pay Blockbuster in-store rental rates out of principle.
I love redbox, but I hate having to take them back to the store the next day. Netflix still requires me to swing by a post office box (my mail man won’t take them from my apartment mailbox), but that is at least on my way to work.
I’ve currently got my Netflix account on hold while I focus on other things, but I suspect it’s something I’ll keep going back to. I tried Blockbuster Online this month, but am so far not impressed. I’ll probably be canceling before the next billing cycle. And just so you know, if you do cancel Netflix, instead of using the hold feature, they’ll still keep your queue and account information. I canceled my account for quite awhile, and was able to log in with my old information, renew the account, and everything was still there.
We love Netflix but only use it in blocks of time each year. We put our account on hold and build up our queue until we’ve got enough movies in there to last us a few months. That way we’re not wasting money each month on stupid movies just to keep getting something.
The challenge we’ve had with Redbox is the hot movies are almost always sold out, although I’ve heard you can reserve a copy.
Good post!
Okay, I’m a librarian, so I have to comment about the library portion of your post. Not only can you request movies from other library branches, you can get movies from virtually ANY library in the country through interlibrary loan, which is free at most libraries. (This is where your local library requests the movie from a library in another town or state, and then the movie is sent to your local library. You pick up and return the movie to your local library.) So even if your local library doesn’t have the movie you want, you can often get it free through interlibrary loan. And some libraries even mail out materials to patrons for free. And you can’t beat free! 🙂 So definitely look into your local library further and see what they can offer!
$ Money Savin’ Momma $
Feature blogger at Engineer a Debt Free Life
I am a huge netflix fan, but I also try to watch the movies right away to get the next one. I really try to take advantage of it. I think it’s great for any movie fan, or even casual because if you get 1 dvd plan and get 2 per month it pays off. I try for 6/month, and they have a huge blu-ray selection which I really want.
I just read this article http://www.readwriteweb.com/archives/netflix_instantwatcher_a_netflix_mashup_for_impatient_people.php
telling of how you can easily find instant movies to watch. Knowing this makes the service even more valuable if you don’t mind watching on a computer, or have the wires to hook it up to a TV.
You could just cut out one of those meals you eat out during the weekends and keep your netflix. $15 bucks is well worth the trip to and from the movie store. And I’d rather support Netflix than Blockbuster any day.
Here’s a little background story that 60 Minutes did.
http://www.cbsnews.com/stories/2006/12/01/60minutes/main2222059.shtml
I’ve been a Netflix member for almost 7 years now (and I’m a shareholder). The only thing that I have issues with is that they tend to ‘hold’ new releases for newer subscribers. It usually takes a few weeks until I actually get the new releases in my queue.
The library for streaming Netflix is limited other than the TV shows so I don’t utilize that benefit at all.
I do a combination of renting from the library and Netflix. For casual movies that people have recommended, I’ll check those out at the library and wait.
Stupidly Yours,
Matt
My local McDonald’s and Walgreens on my way home have RedBox. They’re even closer to the postoffice or library.
I’ve used RedBox for more than a year and haven’t paid a dime yet. Tons of free codes and credit cards to use. LOL.
I love Netflix, but I’m currently using Blockbuster due to a 6-month free membership I picked up. I used to use Redbox heavily but only with free movie codes, which are abundant.
I actually just happened to write a lengthy article about watching movies for free on my blog, which may interest you: http://moneytld.com/2009/01/27/ten-ways-to-watch-movies-for-free-without-breaking-the-law/
I have used Netflix, the library, rental stores, and Redbox. Netflix was great for us because we have kids, and therefore would take full advantage of the unlimited rentals.
Then we moved and had to cut costs, and Netflix was the first to go. We tried the library, but found that many movies (expecially kids movies) were very scratched and wouldn’t play, though we still have a vhs player, and do use the library for vhs movies.
Then more costs had to be cut, so we cut cable. There is a Redbox across the street, so we used that for up to 5 movies per week. It was fine, and a good alternative, but we found an even better way! 2 actually!
We now use Hulu for almost all of our tv watching. We hooked the tv up as a second computer monitor, and we watch tv shows and movies for free.
Also, my husband was looking for work at the time (hence the cost cutting). In his infinite wisdom, he took a mgt position at a local Blockbuster store. Now we get up to 5 movies per week absolutely free. AND the best part is that we get the new releases a week before the general public! We may never use cable again! 🙂
Oh man, you gonna leave my Comcast On Demand out like that? Pshhhh – ON Demand all the way baby! Hundreds of movies refreshed all the time for ya 😉 sure you might pay more for your cable (okay, alot more) but my damn does it feel good getting all your fav. HBO/Showtime shows anytime you want w/ a click of a button.
of course, i’ve never tried NetFlix so i could be way off here…
This may have been mentioned, but couldn’t you downgrade to 1 DVD at a time unlimited NetFlix plan for $8.99. You’d save $5 a month.
@J Money: I did forget about OnDemand. I got it for $1 per month on top of our $20 per month basic cable. I get dozens of free movies at any time. I think we’ve only ordered movies from it twice at the cost of renting from Blockbuster. Good tip.
@Aaron: Not mentioned and I overlooked it as an option, but we’d have to watch 3 movies per month to make it more affordable than just renting from Blockbuster. It’s definitely an option worth looking into, especially if we want access to the movies/TV series that they offer.
I’ve been a Netflix subscriber for 9 years and I love it. I consider it a substitute for cable TV, because I can get just about any TV show I want to watch on DVD. The nearest Redbox, Blockbuster, and library are 5-7 miles from my house, so the convenience of getting and returning the discs by mail with Netflix (not to mention the gas savings) is a huge advantage over the alternatives.
I suggest to anyone debating whether or not to renew a subscription that they try a trial unsubscription — go without it for a set period of time (e.g., one month) and see how much you miss it. If you do miss it, you can always resubscribe later. My problem with Netflix is that I get a special deal (4-at-a-time for the price of 3-at-a-time) because I am a long-time customer, but if I unsubscribe or even put my subscription on hold, I can’t get the same deal again.
You know, I went through this debate not long ago and decided to cancel my Netflix membership. But, I also canceled my cable, too. My biggest challenge with canceling Netflix is that I bought more DVDs. I spent $200 in DVDs alone this month and totally blew my budget out of the water. I didn’t do that when I had Netflix, because I could just rent them anytime I wanted. I’ve reinstated my Netflix membership, but as I’m in school as well, I’ve also lowered my plan to the 2-at-time. Some things to consider:
1.) You’d save more money by keeping Netflix and getting rid of the cable.
Most of the shows you watch can be seen online. And if you’re computer savvy, you can hook your TV up to your computer and just watch them that way. The only station I’ve had any trouble with is NBC and that’s because their online format is crappy. Fortunately for me, the shows I liked on NBC were canceled so it doesn’t matter.
2.) You can watch movies instantly from Netflix.
And, they’re adding more and more to this ‘instant play’ list everyday. You can do one of two things here, either buy the box which is like $100 (not for me), or hook your TV up to the computer and watch it that way. Either way, this is a good way to get that “on demand” included with your Netflix package and not wait for that turnaround on your DVDs.
The deal for me is that I’m a movie buff and I’d take movies over TV shows any day. In that sense, Netflix makes more sense than cable. However, there are certain shows I really like…and I buy on DVD. So, since I’m buying them on DVD, I don’t feel the need to pay for the cable to watch them. I simply watch them online and buy them later. But, so I don’t go crazy with the buying of the DVDs like I did this month, I have Netflix to help tide me over until my budget allows me to spend the money.
Did i misunderstand you when you said you’re down to 2 netflix movies a month at $14.83 after taxes?
I get 2 movies monthly and pay $5.29.
We cancelled Netflix after every movie for 3 months arrived scratched. I don’t know what the deal was, because other people I’ve talked to love Netflix. I won’t do the other one because my mom worked at one of the processing facilities. They worked the people like dogs in the morning, then made them take 2-3 hour (unpaid) lunches until the afternoon mail came in, then worked them like dogs again until they were finished. My mom’s retired so it wasn’t a big deal for her but I kept thinking what about people who had to have childcare and have to pay for that during the day when they’re not actually getting paid themselves.