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Netflix Raises Prices and Infuriates US Customers
Netflix Ditches Combined Streaming and DVD plans for US Customers
Netflix has changed its subscription structure, which will raise prices for existing streaming and DVD customers by 50%
Netflix used to offer:
- $7.99 per month for 1 DVD at a time (unlimited DVDs per month)
- $11.99/month for 2 DVDs out at a time (unlimited DVDs per month)
- +$2/month to add unlimited streaming
The new price structure will look like this:
- $7.99/month unlimited streaming
- $8.99/month for 1 DVD at a time (unlimited DVDs per month)
- $11.99/month for 2 DVDs at a time (unlimited DVDs per month)
Netflix says that this consitutes the best-ever value for its customers, but that is not the case. Netflix math is wrong: how does charging a former $9.99/month customer the new price of $15.98 constitute a good deal?
The disconnect on Netflix' part seems to lie with the streaming option: the selection of streaming movies is only a fraction of what is available via the DVD library. In practice, unless a customer only likes blockbusters and rom-coms, he or she will eventually need to sign up for a DVD plan... and see that monthly bill double.
Of course, that customer may just switch to Amazon, Auteurs, or other on-demand services.
One can picture Netflix expecting its announcement to be met with cheers, but check out the Netflix blog to see how angry its customers are.



Most RecentMost Recommended Comments (5)
at 14:59 on July 12th, 2011
Here's what a friend of mine was moved to write about it... a satire version of the Netflix message to customers:
at 17:28 on July 12th, 2011
The Netflix Facebook page has locked people out of commenting on the rate change posting after like 13,000 complaints... hah!!
at 20:12 on July 12th, 2011
This increase is ridiculous Netflix is (was) good, but too expensive now. An alternative is the service from "TVDevo" website that runs well and consumes less bandwidth. I found out about it on the CNN site a while ago and have been using it since.
at 08:34 on July 14th, 2011
Once you offer something for real cheap, its hard to go back. I would argue that Netflix was too cheap before, considering what you got, and that many had replaced their entire entertainment viewing budget with just a Netflix account.
Raising the price in February, and then raising the price another 60% in September was the wrong approach, though. Trying to hide it by saying its the lowest price ever is also a smack in the face to anyone with a brain.
at 12:44 on July 26th, 2011
Goodbye NETFLIX. Hell-0 REDBOX. Bad move in a BAD economy.