SAN FRANCISCO (KCBS) – Despite a poor quarterly earnings report last week in which Netflix admitted losing 800,000 customers since announcing a price increase in June, the company is still a very viable option to stream movies and TV shows.

KCBS Technology Analyst Larry Magid said it is still a very good deal, despite the increased cost.

“I’m still spending my $7.99 on Netflix because between old movies and TV shows, many of which I missed when they were in regular production, I still think I’m getting my $8 worth,” Magid said. “I understand why people are angry. I think it was incredibly boneheaded of them to do what amounted to a 60 percent increase if you want both streaming and DVD. But a lot of people don’t need DVD’s.”

KCBS Technology Analyst Larry Magid:

Magid said the streaming service is very useful because it allows subscribers to not worry about returning movies when they expire after being rented.

“I like the model. I wish they had more videos, TV and movies,” he said. “But the good news is that they just announced a deal with Disney.”

Magid said that Amazon is also coming on stronger as a competitor in the industry.

You can hear Larry Magid’s Tech Report Monday through Friday at 3:50pm on KCBS All News 740AM and 106.9FM.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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