Wednesday, July 13, 2011

NetFlix and money

Well, Netflix is raising their rates as of Sept 1 by 60%.  The current pricing plan of $9.99/month for unlimited streaming of movies etc and unlimited DVDs (one at a time) per month will be split and charged separately at the rate of $7.99 for unlimited streaming and $7.99 for unlimited DVDs.  This makes your new bill to be 15.98 an increase of $5.99 per month.  Personally I don't like the idea and will be cancelling my subscription with netflix before Sept 1.  In doing so I also understand them doing it.  The only thing a company is in business for is to make money and a company will do what is necessary to make that money.  They will raise their rates for their products and/or services to the point they believe the market will handle.  If they guess wrong, they lose too many customers and lose money.  I can't fault netflix for this decision, they are in business to make money after all.  I'm not going to complain about it, I'm just going to quit using them because the new pricing prices me out of what I feel is reasonable and affordable to me.  Yeah I'm saying $5.99/month increase is too much.  I have read numerous comments to Netflix on their facebook page and on their blog.  Lots of people are seriously ticked off.  I say this is nothing to get torqued about.  Relax, lower your blood pressure and just deal with it.  In the grand scheme of things, a $5.99/month increase to view movies online AND get unlimited DVDs per month (one DVD at a time) is not, or should not, be significant enough to raise your blood pressure.  Save some of that hostility for things that matter.  Just cancel your subscription and move on.

Well that said, I hope that Netflix either decides not to go through with it or to grandfather the current subscriptions in at no change.

2 comments:

Rhonda said...

heehee, your brother is one of those pretty worked up over it! He left a comment on Netflix blog. :D

Holly said...

I think it was a dumb marketing decision. I'm wondering how many customers cancelled their subscription after the change? It doesn't affect me personally, since I really only watch movies/tv shows/etc on my computer, but I know a few people who are pretty pissed off.