Wednesday, July 13, 2011
Dear Netflix, Thanks For The Customers! Signed, Redbox
Talk about backlash. I've yet to see one comment anywhere supporting Netflix's price hikes and for good reason. Netflix announced a new pricing scheme yesterday that effectively raised the price of a popular subscription plan by 60%. Instead of costing $9.99 for streaming and DVD rental, Netflix separated the services and priced them each $7.99, which results in a combined cost of $16. But it's not the $6 people are ranting about. Most of us would spend half of that amount on one silly coffee drink every day if we weren't lactose intolerant. It's that Netflix raised the prices without adding any value. There simply isn't any way of spinning this as a benefit to the consumer and backlash is the result.