What should Netflix do? After announcing a price hike on their services, their consumers have taken to Social media in droves to protest their decisions. An upcry like this has not been heard since LeBron James decided to ditch Cleveland and move to Miami. Consumers are vocally rejecting the announcement of the price increase that was made on their blogs. The consumers have takes to Tumblr, Twitter and Facebook to express dismay at the signs of greed from one of their favorite companies and that too with no prior warning.
For those of you who were under a rock, almost two weeks aga, Netflix announced that it was ending its beloved $9.99 plan for video streaming and one dvd rental a month and increasing to to $15.98. The public outcry has been huge and so far Netflix seems to be sticking with its stance. However, immediately after the announcement went up, searches for Netflix rival immediately went up by a huge amount. Customers have threatened to cancel service and many news outlets have picked up this story and have published it.
All in all, I would consider it a poor move on the part of Netflix. With the increase speed that news spreads in todays day and age, I think Netflix should bow down to the consumer demands and reduce their prices. Because if social media can cause a revolution in the Middle East, who knows where Netflix may be after the storm dies down.
3 comments:
I think, in reality, we all know deep down that Netflix is worth a lot more than we pay for it. Like $50 a month; think about how much you spend on cable and how little there is to watch and how crappy the customer service is. Netflix knows this: you'll see the subscription price steadily climb over the next years, I bet. I think the NY Times should have done something similar: charge $5 a month for a few years, then jack it up when people are hooked.
I 100% agree with Peter. Which side is actually being greedy? I think people's perspectives have been totally skewed as we've gotten used to endless deals on the net. This is why companies are being driven out of business left and right as people flock to the cheapest deals.
As my friend on FB eloquently stated:
"Remember when a 2-night rental of a new release at Blockbuster used to cost like $5.99? People need some perspective about this Netflix pricing crap. Get over it."
To continue the conversation, I found this interesting article at DenverPost.com discussing the power and influence of Netflix, despite its huge price hike.
The article notes that the company was not at all surprised that its recent price hike rankled customers and had bloggers screaming. Still, the number of canceled subscriptions will be very small compared with the number of Netflix members, a company spokesman said. "Generously, maybe 30,000" will quit the service.
Netflix has experienced tremendous growth in subscribers, up 69 percent in the first quarter of 2011; its second-quarter report will be issued this week.
One important thing to remember that these increased fees are not coming out of nowhere -
Netflix's costs are growing: The studios are negotiating sharply steeper license fees for content.
http://www.denverpost.com/television/ci_18525401?source=rss#ixzz1T5miAqka
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