Netflix insists people still see value despite price increase

Online movie streaming firm admits some users likely to cancel service in wake of price hike.

Netflix Inc. spokesman Steve Swasey told MarketWatch Thursday that the company realized that "some people would be concerned" about its decision to raise the price for a combination DVD-and-streaming video plan to $15.98 from $9.99, and that a certain number of customers would cancel service. Comments on Facebook and other places across the Web have been overwhelmingly negative since the increase was unveiled earlier this week. However, he said, there remains a "silent majority" of subscribers who think the $15.98 price point still represents "a pretty good value." In addition, Swasey continued, the price increase was necessary to help satisfy U.S. DVD customers."We have streaming-only in Canada, and it would have been very easy to eliminate DVD service in the United States. But by making these changes, we were able to keep DVD a viable option for people who still want that format in the U.S." This doesn't mean, however, that Netflix doesn't care about consumers who are upset about the price move, he added. On a lighter note, he said:"I made a comment to someone, on background, that the $6 difference between the old and new prices is the equivalent of a couple of cups of latte. And that's gained a lot of traction. I've received a bunch of hate mail, because people thought Netflix was being insensitive to people who don't drink latte. That's not the case at all. I'm not a coffee drinker, and my wife drinks regular joe." Netflix shares are down 3.2% Thursday.

Better Business Bureau: Consumers Need Security Systems

The Better Business Bureau (BBB) is telling consumers to be wary of an increased residential burglary this summer, advising consumers to purchase a professionally-installed alarm system.

"According to the FBI, the summer months of July and August have the highest rates of burglaries," says the Bureau, adding that homes without alarm systems are 2.2 to 3.1 times more likely to have a break-in.

Also, homes with alarm systems average $400 less in property loss than homes without alarm systems that have break-ins.

In 2010, BBB received nearly 25,000 inquiries from customers asking about burglar alarm systems. The Bureau goes on to offer this advice:

• Do your research when picking a home security system and don't get pressured into buying a system from a door-to-door salesman. "Homeowners should research local companies carefully and thoroughly before they buy a system that doesn’t offer the protection they were after.”
• Choose a professional installer
• Contact at least three companies
• Ask about all charges up front
• Know the ins and outs of your contract
• Insist that the installer "walk" you through your system until you fully understand how it works

More Than 500 Million Connected TVs Worldwide By 2015: Forecast

Television manufacturers will ship 138 million connected TV units worldwide in 2015 -- with more than half-billion connected TVs having shipped by then -- up from about 60 million in 2011, according to an updated forecast from research firm DisplaySearch.
This year, more than 25% of all flat-panel TVs shipped are expected to have some form of Internet connectivity, growing to 47% of all flat-panel TVs shipped in 2015, DisplaySearch said.
In 2015, 35% of 46-inch or larger TVs in North America will be "smart TVs," according to the research firm. DisplaySearch defines "smart TVs" as being able to: retrieve content from the Internet independently of a portal; provide intelligent search and recommendations; let users upgrade them; and network seamlessly with other devices in the home.
An increasing number of connected TVs will include wireless support to be able to deliver content to devices such as smartphones and tablets in the home. According to DisplaySearch's forecast, more than 98 million TV sets with 802.11 wireless networking built-in will ship in 2015.
"Wi-Fi technologies are the foundation of smart TVs," DisplaySearch director of TV electronics research Paul Gray said in a statement.
DisplaySearch's "Quarterly TV Design and Features Report" includes forecasts for video processor and signal processing integrated-circuit market development including 120/100 and 200/240 Hz frame rates. DisplaySearch is part of NPD Group, a provider of consumer and retail information and research for a range of industry sectors.

3DTV Price Drop Could Spur Purchase Interest

The price of 3D televisions could drop markedly by the holiday season, but that still may not be enough to make the technology, which faces a host of other challenges, will catch fire with consumers.
According to consumer electronics shopping site Retrevo.com, the price differential between 3DTVs and flat-screen HDTVs could drop to $150 by November, down from its current differential of $400 and significantly lower than the $900 premium found during the holiday season last year. According to Andrew Eisner, director of content for the site, price is the biggest barrier to consumer adoption for the technology. And a lower premium for the TVs could increase demand.
"In all of the surveys we've done, price comes in as the number one reason people don't buy 3DTVs," Eisner tells Marketing Daily. "All things being equal, what we're saying is that consumers will go for [3DTVs], even if it's only for the odd movie or sporting event."
Even with the price coming down, however, there are still several obstacles to widespread consumer acceptance, not the least of which are content availability and the price of accessories such as glasses. In April, the NPD Group reported consumer awareness of LCD 3DTVs increased to 36% in February 2011 from 28% in September 2010. At that time, the market research company also noted that with the decline of price premiums for the devices, inhibitions over purchasing accessories such as glasses increased.
And though the content picture is improving (particularly with networks such as ESPN offering full-time 3D outlets), consumers are still wary of bringing the technology into their homes.

"Sporting events are a fun experience, [but] we're still waiting for the next 'Avatar," Eisner says. "3DTV is in an interesting place. If anything's going to [move it forward], it's going to be price. But I'm not going to go out on a limb and say it's going to push it over the edge. Consumers are still not that hot on it."