Netflix Raises Prices and Infuriates US Customers

by NowPublic Staff | July 12, 2011 at 02:35 pm
772 views | 4 Recommendations | 5 comments

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

Photos

286/365: Do you Netflix?

286/365: Do you Netflix?

see larger image

uploaded by exalthim

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.

Advertisement
recommend This comment thread is now closed
1
dysamoria

Here's what a friend of mine was moved to write about it... a satire version of the Netflix message to customers:

"Dear [Customer], 


We've decided to increase the cost of your membership by more than 50%.  Obviously we needed some straw excuse to do so, and just to really rub your nose in it we're going to call that excuse "choice" and pretend we didn't already offer TEN different plans.  
Your current reasonable membership rate is the one which earned us the large and loyal customer base that allowed us to drive most big box as well as mom&pop movie rental shops out of business this decade.  That's the same reasonable membership rate which we just raised approximately one year ago the last time we offered you the "choice" of a lesser, streaming-only offering.  Now that we dominate the video rental entertainment sphere, we want to collect more bux by ridiculously splitting your current plan as follows:

  • Plan 1: You-Didn't-Want-It-The-First-Time-We-Offered Unlimited streaming of our still quite limited streaming library
  • Plan 2: Cool Retro! DVD-only plan

As an added convenience we're defaulting you into the price hike in just a few months in case you miss this email or don't get around to updating your membership selection for any number of valid reasons.  Such reasons may include but are not limited to the fact that if you make no changes to your plan at this time you may continue your current plan membership until September 1, BUT if you change the setting today, then why today you can go ahead and kiss that online streaming or dvd rental goodbye!  So don't forget to make that setting change, 'kay?!  And do please note that once you switch you may not switch back to your currently existing plan at your currently existing rate, regardless of whether or not it's prior to our official September 1st changeover. 
Pretty much we're aware this is gonna piss off & drive away a lot of you customers, and fuck you very much for your business.  We need the money for our new production company.  As always, we have a toll-free number with a frustrating 30-minute queue wait time if you need to yell at some poor, underpaid schmuck about it.  

-The Netflix Team"

0
dysamoria

The Netflix Facebook page has locked people out of commenting on the rate change posting after like 13,000 complaints... hah!!

0
KathyWei

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.

0
DevDia

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.

0
LB

Goodbye NETFLIX.  Hell-0 REDBOX.     Bad move in a BAD economy.

This story was created over 3 months ago, the comment thread is now closed.

NowPublic on Facebook

What is NowPublic?

NowPublic lets people work together to cover news events around the world.

Find out more

Crowd Power

dysamoria
First Flagged at 5:29 PM, Jul 12, 2011 by dysamoria
These members have powered this story:

Related Stories

Recommendations (4)

Most recently recommended by:
 

closeSign in to NowPublic

is reporting from