Netflix Deflects Rage Over Price Increase

oxide7 writes "Netflix provoked an unprecedented outpouring of backlash across the Internet as the company unveiled plans to raise prices on its movie-rental services. The company said it would raise the Internet-plus-DVDs-in-the-mail plan from $9.99 per month to $15.98 per month late Tuesday sparking protests and rage across the subscriber base. Netflix brushed off the criticism however. 'We knew there would be some people who would be upset,' company spokesman Steve Swasey said. 'To most people, it's a latte or two,' he added."

They don't get it

[southpolesammy]

This isn't about the use of disposable income. It's about having a huge increase in cost with absolutely nothing in return. Now, if they'd said that they'd finally ripped their DVD collection to streaming, or even somewhere near it, I'd listen. Or perhaps they're finally going to get more recent titles in line with Blockbuster or Redbox. But they're not.

This is a pure, unadulterated money grab. So I'm grabbing mine back before they get the chance. Canceled my service yesterday. And per http://www.hackingnetflix.com/2011/07/new-pricing-poll-what-are-you-going-to-do.html [hackingnetflix.com], I'm not the only one. Over 1/3 say they are quitting. Explain that to the shareholders, NetFlix execs.

Re:No rage, just a lost customer.

[localman57]

At some point it probably doesn't matter that much. Netflix is likely to keep enough people to be able to keep the lights on. And the price they pay for content will likely be proportional to their number of users, as will their bandwitdh costs, so their single biggest costs will scale up or down with their user base, keeping the margin per user relatively flat. If they can increase their margin by 200% at a cost of 30% of their users, that's a win.

Personally, I think it's a smart move. Netflix has had by far the greatest success monitizing the content delivery business (excluding the wire-to-your-house providers like comcast or AT&T). Google and Hulu still have to figure out the business plan (Youtube is popular as shit, but hard to make money on). This gives netflix a chance now to try and raise margins, in order to try and gain enough capital clout to fight with their likely ultimate rivals for exclusive content, Comcast, AT&T, etc.

The need to shoot for the moon now and try to get to the point where they can square off against the 800 pound gorillas, or they'll end up like Tivo.

Re:No rage, just a lost customer.

[deains]

Happy Bastille Day everyone.

The Thank You Economy... NOT!

[Kamiza Ikioi]

You're damn right! Latte? Latte? Arrogant little shit, people (like me) are pinching pennies cancelling even basic cable in the tight economy already trying to keep a "normal" life going with a $10 spot to Netflix. I can go to Redbox, Steve Swasey, you little asshole and get almost 3 DVDs a week! Netflix was mostly to keep my CHILD entertained with kids shows, but fuck it, it's just a latte to you, right?

Sorry for the cursing, but that mother... needs to read The Thank You Economy by Gary Vaynerchuk and get some goddamn manners! This is a less for how NOT to conduct business when everyone has a direct line to 500 friends on Facebook, Twitter, G+, etc! What a retard! I hope the fact that he is spokesman for Netflix will make future employers go, "Ah, so I guess I don't have to ask why you're now looking for new employment. Well, we don't find you qualified for spokesman, but we do have janitorial."

Re:It still has no live news or live sports

[geek]

Get some rabbit ears and get your live sports in HD for free