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Netflix’s Bright Idea Of Raising Prices Has Failed Miserably

Submitted by on September 16, 2011 – 12:52 pm4 Comments

There is outrage in the streets of America!

No, it’s not over Obama‘s jobs speech. People are pissed off about Netflix raising the price of their subscriptions and they are letting their voices be heard. Thanks to quite a bit of cancellations due to the increase in price, Netflix saw its stock drop 17% today. How’s that for the consumer voicing their displeasure and it actually affecting a company?

For those of you not aware, Netflix decided that it would be a great idea to spike their rates up 60% in order to maximize the profit off of their growing base. The shift in pricing had current subscribers steaming; and for good reason, too. While Netflix online streaming has been a massive benefit to users, the company is still behind in the actual DVD race as Redbox and Blockbuster continue to boast having new releases 28 days before Netflix. So what did subscribers do? Cancel the DVD portion of their service and basically tell Netflix to kiss their asses. In all honesty, who wouldn’t be mad at an increase of 60% in anything. If what I bought yesterday was $10 and now it’s $16, that’s a pretty damn good spike.

Because of the increase, Netflix is projected to not see a subscriber increase for the first time in the past two years. That’s great news for Blockbuster, who has been scratching and clawing to stay alive in the rental race. But the real question is what will Netflix do now? Will they lower prices or just keep on chugging along?

Better question, do you still have a Netflix account?

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  • Yep says:

    We have a blockbuster 3 blocks away. Dropped netflix, going to support local jobs for the same price I was paying. Idiots!

  • Johnny says:

    I.. we (family) are long time Netflix subscribers and over the years have enjoyed the service. We used to talk Netflix to our friends and probably influenced some to join. Rates went up and our income didn’t, kids hit college, da.da.da.. Cut back from three movies to two. Removed Blu-Ray. Cut from two to one movie at a time, But hey, that streaming service was a perk ya know. Baby girl(9) finds something to watch on the ps3 every now and then. I streamed a show once that I enjoyed. BUT TO PAY EXTRA FOR IT ! UMMMM. Let me think about that…. When I got the notice that rates were going up. I set a notice on my calendar to remind me to downgrade the account once again two days before being billed the new rate 9-22-11. I thought ahhhwwwwwaaa I might change my mind on this if I give it time. Time passed. Nope. Still think the price increase is crazy crazy too much. Content is weak for me. I’m sure lot’s of folks just let it ride. I’m sure Netflix has it all figured out. I’m sure redbox is just a fad. I’m sure Hulu won’t gain any content. I’m sure….. ummmmm…ya know, I could be wrong.

  • Snow says:

    Just cancelled my account online. When I cancelled, they have a list of ansers why I cancelled. I didn’t see an option for “Because NetFlix is greedy,” so I just answered to cut costs. I’ll be using On Demand and RedBox, as I only watch 2-3 movies per month anyway. Someone else that didn’t raise prices a whopping 60% for no good reason, can have my money instead.

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