Netflix hikes prices for DVDs + streaming

[Fresh Tendrils]

Re: Netflix hikes prices for DVDs + streaming

It's almost like they want DVDs to just go away so they botched this whole thing. We talk about how Blockbuster got stagnant and Netflix came in and stole the show, but now they are choking big time with how this whole scenario is playing out.

They're lucky that they are really alone competitor wise for what they do (or I guess for what they have done) or else somebody would be snatching up market share big-time.

[Fresh Tendrils]

Re: Netflix hikes prices for DVDs + streaming

Netflix "Exploring Options"

[CMH]

Re: Netflix hikes prices for DVDs + streaming

Wells (rightly) pointed out that upset customers could just be more inclined to speak up, meaning that their views may not necessarily be representative of most customers’.

I expect people will chime in and disagree, but I think that would be confirming exactly what Wells says and, honestly, I agree with him 100%.

Netflix made the move they had to make. Prices for content were increasing and therefore the price to view that content must increase. It's simple math.

Could Netflix have found a better way to explain this, handle this? Of course. But, I have to believe that a majority of the one million customers that dropped didn't consider this at all; they simply saw price increase and ran (which is fair. You can do whatever you want as a consumer).

But, Wells is right that the negatives always say more than the positives. People with negative opinions and thoughts speak the loudest and the most frequent. We see it every day on this very board.

Perhaps I have a soft heart for Netflix at the moment because I just went through this very thing yesterday. We opened a channel for people to express concerns, issues with the technical aspects of a webcast and of course 100% of the comments were negative.

All we could do is brush it off because the ones that didn't say a thing likely didn't have a problem and why would anyone without any issues comment on any technical difficulties?

You open the door for people to express anger over a price hike and those upset about it are going to say they are upset. Those that don't care just signed onto Netflix and watched a movie.

[Fresh Tendrils]

Re: Netflix hikes prices for DVDs + streaming

I would agree with Wells, but no matter the percentage of "disgruntled" customers they're sliding on multiple fronts. Their PR in the media is basically getting whipped to death. Plus, their stock has plummeted. Obviously they knew they were shaking things up, but I don't think they expected the reaction to be of this magnitude.

[23]

Re: Netflix hikes prices for DVDs + streaming

I expect people will chime in and disagree, but I think that would be confirming exactly what Wells says and, honestly, I agree with him 100%.

Netflix made the move they had to make. Prices for content were increasing and therefore the price to view that content must increase. It's simple math.

Could Netflix have found a better way to explain this, handle this? Of course. But, I have to believe that a majority of the one million customers that dropped didn't consider this at all; they simply saw price increase and ran (which is fair. You can do whatever you want as a consumer).

But, Wells is right that the negatives always say more than the positives. People with negative opinions and thoughts speak the loudest and the most frequent. We see it every day on this very board.

Perhaps I have a soft heart for Netflix at the moment because I just went through this very thing yesterday. We opened a channel for people to express concerns, issues with the technical aspects of a webcast and of course 100% of the comments were negative.

All we could do is brush it off because the ones that didn't say a thing likely didn't have a problem and why would anyone without any issues comment on any technical difficulties?

You open the door for people to express anger over a price hike and those upset about it are going to say they are upset. Those that don't care just signed onto Netflix and watched a movie.

problem is this

They just raised the prices not long ago... now they're doing it again yet still not providing any extra services as a cushion

You cant just keep jacking up the prices yet no mention of the benefits besides.. hey we're keeping it the same for ya

Pretty soon someone will come along that does it better or the same with less of a hassle and people will bounce

[CMH]

Re: Netflix hikes prices for DVDs + streaming

You cant just keep jacking up the prices yet no mention of the benefits besides.. hey we're keeping it the same for ya

I disagree with this because it's not as if the instant stream content has remained stagnant. New content is being uploaded all the time.

I understand if people don't like the content available. That's a different story and you're never going to satisfy everyone in that case.

But Netflix continues to expand on their library. Yes, the Starz deal hurts them a lot and will kill content, but Netflix has recognized that and told their customer base that the money they didn't use on Starz will be used on something else. They aren't just sitting on the money.

[Pared]

Re: Netflix hikes prices for DVDs + streaming

I disagree with this because it's not as if the instant stream content has remained stagnant. New content is being uploaded all the time.

Content has been removed just as frequently.

You know how they can justify this? Development.

They have offered applications on the PS3, iPhone, iPad, Android, etc. and those cost $ to develop and support. Did they charge for these? Nope.

They are still ad-free.

You can point out WHY the cost increase was necessary - better servers, faster connections, etc. that the consumer will understand. But if you don't tell your consumer base POINTBLANK that this is what you are doing, you are going to get the reaction you are seeing - mass exodus.

[CMH]

Re: Netflix hikes prices for DVDs + streaming

You can point out WHY the cost increase was necessary - better servers, faster connections, etc. that the consumer will understand. But if you don't tell your consumer base POINTBLANK that this is what you are doing, you are going to get the reaction you are seeing - mass exodus.

I think you lose no matter what. You tell the customers why the price went up and customers will ultimately complain that the price is going up.

It seems like a slap in the face comment to make for Netflix to suggest the price is going up to offer more services like phone applications. I can already picture people saying: "I don't use that, so why do I have to pay more?"

Their response to increase prices because the price of acquiring content has increased is the most reasonable they can make because everyone uses Netflix to receive content.

[Pared]

Re: Netflix hikes prices for DVDs + streaming

But if they AREN'T acquiring content that most people will know, they will pose the same question - where, exactly, is my money going?

The underlying point is you have to give reason - something Netflix has yet to do. I can look at the environment variables and piece the puzzle together as to WHY they are raising prices - but most can't. They just pay for a service and notice said service hasn't changed and I need to spend more money on it.

MS did the same thing with XBL when they raised their subscriptions prices. However, they justified the move by way of rising costs. Just follow suit; It doesn't take much...

[CMH]

Re: Netflix hikes prices for DVDs + streaming

But if they AREN'T acquiring content that most people will know, they will pose the same question - where, exactly, is my money going?

People were asking this question even when they had Starz content. I think most members know by now that Netflix cannot provide the content people want all of the time. Netflix also cannot provide you new releases when you want them. That, people have known for a couple years now.

When customers argue that the selection is weak, my argument is: you're not the target base then. There are many many fine films in Instant Watch. The fact that Person A has no interest in watching those films isn't Netflix's fault. They offer what they can offer.

One of the things I think this move actually helps Netflix figure out is which of their members actually cares for their content. Let's face reality here, most people do not watch the value of their subscription. They either keep DVDs for weeks or months on end or do not watch Instant Watch films enough.

I will wager that a great majority, great great majority, of the one million people that canceled their subscription were one of those folks. Nothing against them, in fact, I applaud them. It took a major shift in pricing for them to say "I've had enough. I don't use this enough to spend the money." Right on!

As for Netflix, they now can say "Okay, cool, we now have a better understanding of our customer base. The people that left probably weren't using our services enough, but the people that stayed probably are."

Of course, we know that Netflix makes a lot of money from the people that don't use their subscription, but if Netflix is able to pinpoint which of their customers matter most, they can then look to purchase the content that will make most happy - because Netflix already knows it cannot make everyone happy.

And then the question: "Where does my money go?" is asked much less. However, no matter what, people will always ask.

The underlying point is you have to give reason - something Netflix has yet to do. I can look at the environment variables and piece the puzzle together as to WHY they are raising prices - but most can't. They just pay for a service and notice said service hasn't changed and I need to spend more money on it.

I find this unfair. I get where you're coming from, and I definitely understand, but it is inexcusable for people to expect Netflix to do their thinking. It isn't rocket science to understand that content costs money. We were having discussions way back on OS alone on how Netflix will ultimately have to increase the price of their service because there was no way they could continue to deliver content at the current price model.

Should Netflix have been more vocal? Yes. And I think we all agree on that. Netflix handled the price increase poorly - well, I take that back. They handled the execution of it poorly. No one should have truly believed that Netflix would always be $7.99 a month for all of its content.

As for Netflix telling people their plans, they just did with Qwikster and that got just as much anger from the customers. You can't win when you do something people don't want: and what they don't want is a price increase.

[Pared]

Re: Netflix hikes prices for DVDs + streaming

And then the question: "Where does my money go?" is asked much less. However, no matter what, people will always ask.

As for Netflix telling people their plans, they just did with Qwikster and that got just as much anger from the customers. You can't win when you do something people don't want: and what they don't want is a price increase.

You look at your points here - they don't overlap. Charging me more for a service I don't use doesn't make sense to me. Qwikster means nothing to me.

And as a consumer, an individual paying for goods and a service, I have every right to question where my money is going. Netflix is no different now than when I paid less for it. If you can't justify that to me, then you can't be surprised when I leave.

The common reaction to any price increase is, "Why?" not "Sure, take my money." You have to be prepared for that.

[Fresh Tendrils]

Re: Netflix hikes prices for DVDs + streaming

How often do cable/satellite tv companies raise their prices year-to-year with really no explanation as to why? Netflix shouldn't have to explain why it increases prices.

The Qwikster thing was handled poorly. Not integrating it with Netflix was a poor decision to make. Yes, they will eventually sell it off, but people are still in the "bundle" mindset. Separating a service into two completely separate entities is obviously going to shake up your customer base and raise some negative criticism. I don't think people even care about the rebranding of that side of the service. Netflix's attitude seems to be completely off-base with this decision. It seemed rushed out to appease people with little thought to how this "new" service would actually affect their existing customers.

[mgoblue]

Re: Netflix hikes prices for DVDs + streaming

You look at your points here - they don't overlap. Charging me more for a service I don't use doesn't make sense to me. Qwikster means nothing to me.

And as a consumer, an individual paying for goods and a service, I have every right to question where my money is going. Netflix is no different now than when I paid less for it. If you can't justify that to me, then you can't be surprised when I leave.

The common reaction to any price increase is, "Why?" not "Sure, take my money." You have to be prepared for that.

All this just made me actually think about my Netflix streaming account and whether or not it was worth it. Prior to all this I'd just pay every month and not think about it one bit.

Now I think they're losing streaming content (Starz going away) and not replacing it with anything....Netflix has to make it worth my money to go streaming, and I finally realized that their selection isn't that great anymore.

[Pared]

Re: Netflix hikes prices for DVDs + streaming

How often do cable/satellite tv companies raise their prices year-to-year with really no explanation as to why? Netflix shouldn't have to explain why it increases prices.

Does it make it right? How is that, in any way, justifying actions by these large corporations?

And that's not 100% true, at least in my experience - many times I've read my rates will go up because of increases in cost and why - and I'm notified of it via email (TimeWarner).

[mgoblue]

Re: Netflix hikes prices for DVDs + streaming

Does it make it right? How is that, in any way, justifying actions by these large corporations?

And that's not 100% true, at least in my experience - many times I've read my rates will go up because of increases in cost and why - and I'm notified of it via email (TimeWarner).

True...we should always be evaluating the worth of Netflix's service.

I'm just lazy (like a lot of subscribers) and ignored the fact that they weren't really getting me movies/tv that I wanted.

All this craziness just made me realize I was wasting money and I canceled. If they improve their service I may rejoin, simple as that.