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13 Jul

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Conversations on Netflix’s Rate Rise Flood Social Media Outlets

July 13, 2011 | By | 9 Comments

Yesterday Los Gatos, California based company Netflix announced a 60% price increase for users who wish to have both the On-Demand Streaming Service and DVD’s sent via the mail. The sudden rise in price has users angry, wanting to know the reasoning behind the change.

“Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs.” –Netflix’s Vice President of Marketing, Jessie Becker

Netflix subscribers are not happy to say the least. “Dear Netflix” and “#redbox” are both currently trending on Twitter and many news outlets have covered the story.  Netflix posted the announcement on their Facebook Fan Page and it already has over 28,000 comments (most of the comments are negative). Facebook Groups like “Cancel Netflix” and “I Unlike Netflix Today” have been created to let people vent their displeasure. Some users are even trying to coordinate a massive subscription cancellation for September 1st (the day the price change takes effect for current subscribers).

This is one of the worst brand backlashes on social media in a while.  Reputation management can be a nightmare like this if you do not plan, predict, and analyze.  Netflix clearly had not anticipated how their subscribers would react to this change.  I’m glad I only use the streaming service; which rarely updates or changes. I find that bad Jackie Chan movies stay on Netflix forever and it takes a while for “new” releases to be available.

What do you think about the Netflix price increase? Are people being irrational or will we see continued backlash in the future? Share your thoughts and comments in the section below.

Comments

  1. Ron

    We’ve had the 2-DVD’s per month plan for $4.99 and that has met our entertainment needs just fine. Really! Who has the time to watch more than two movies per month, and sometimes we don’t even see that many, which brings me to my point. If Netflix moves us into the unlimited, 1-DVD out at a time plan for $7.99 per month, we’ll be parting ways. We were just fine with the two per month plan which also has the latent benefit of not bombarding one with unlimited and unwanted content at a higher costs. I’d say we’ll switch to a company that doesn’t coerce me into higher costs. Vonage is another one we’re about to bail on. With their latest price increase and all the state and local taxes, they are now as high as BellSouth was when we left them a few years ago.

  2. Screw netflix. I quit the service!!! Another company who blew it…sure bet it sounded good in a meeting…”We double prices, double revenue, they have no other choice!!!”

  3. I think someone made a BIG mistake at NetFlix thinking a 60% increase would not create a backlash. Serious damage repair needs to be done and quickly. This will be a disaster for them and will take a long time to come out of if indeed they proceed with this idiotic plan.

  4. Tiffany

    It’s actually going to save us a couple bucks! We looked at how we use the service and realized that we almost never use the streaming service because of the limited availability. So we signed up for the 1 disk at a time plan and our cost is going down. Most of the people I know (if they stay with Netflix) will choose one or the other, but not both, so I think this is going to backfire hard for the company.

  5. Agree, I personally love my unlimited streaming Netflix and think that the price hike is a bit sudden. I think if Netflix had decided laid the ground work for a price increase and informed their users months in advance we wouldn’t all feel so screwed. It just feels like they forgot about their customers, which leaves a bad taste in my mouth.

  6. Chris

    I just added Netflix a little over a month or so and already find it to be of very little value from a streaming perspective. I have already watched the movies and shows that appeal to me and rarely see any decent content added. I had to pay $50 for an Xbox live membership to be able to stream the the Netflix product. I hope this bogus move will severly damage the Netflix reputaion, but feel bad for companies like Xbox and other streaming devices that will be impacted along with them. I will be joining the wagon train moving to another viable source. It will be interesting to see how the Netflix competitors capitalize on the golden brick road to new business.

  7. Great comments all! I agree that the one DVD at a time plan is simple, but if you don’t watch a lot of movies why not just use a Redbox? Chris, I feel your pain with the Xbox, I can rarely find a movie I want to watch on there. Thank you for your comments everyone! Keep sharing!

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