Conversations on Netflix’s Rate Rise Flood Social Media Outlets
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.