Tuesday July 12th, Netflix announced they will be increase their prices and it is causing a social media UPROAR!
Hours after the news came out that Netflix has changed their online video streaming and DVD packages to create better options for their customers, the madness began. Not only will the package options change, but the prices would too! A drastic increase from $10/month to $16/month (a 60% raise), caused thousands of angry comments to be posted on Netflix Facebook wall.
Groups have also formed on Facebook with names including: “Cancel Netflix”, “Boycott Netflix”, “Cancel Netflix Sept 1” (the date the new prices will take effect).
Here is a screenshot of just a few of the publicly posted comments on Netflix Facebook wall from the past 48 hours:
An email was sent to all Netflix customers. This email makes it seem as if they now have a choice of 3 different options:
- Online streaming only: $7.99 per month.
- Unlimited DVDs only, 1 at a time: $7.99 (you can opt to receive more DVDs for a higher fee).
- DVDs and online streaming (packages vary depending on the number of DVDs at a time you choose).
In the email I received, Netflix was specific to our current plan:
“We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.
Your current $23.99 a month membership for unlimited streaming and unlimited DVDs (including Blu-ray access) will be split into 2 distinct plans:
Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs (including Blu-ray), 3 out at-a-time (no streaming) for $19.99 a monthYour price for getting both of these plans will be $27.98 a month ($7.99 + $19.99). You don’t need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.”
With all this competition, why would Netflix make such a drastic change?
What was Blockbusters response to the Netflix price change? Focusing on their low prices. Blockbuster, though many stores have closed, still offer .99 cent deals on DVDs and $2.99 on new releases. You can also rent by mail without a subscription!
And have you heard of Redbox? With new release DVDs for $1 a day, Redbox has already starting making a name for themselves around the US with over 3 million Facebook fans! (Netflix now has 1.5 million, a number that I am sure decreased in the past 48 hours).
Not only that, but as most people know, cable companies allow you to order free movies on demand with different cable packages (basically the same way you would stream them from Netflix).
I decided to ask my Facebook community for their voice on the new Netflix pricing structure. Some people didn’t know about the change, and a few don’t use Netflix, but most people are shocked by this change with comments including:
“I am only going to keep the online stream, the extra for the mail DVD’s no longer seems worth it with the price increase.”
“I wish I could get away with allowing my product and service level to decrease and raise my prices at the same time. We’re canceling Netflix.”
“They’re going to increase the price on a service we were contemplating canceling… thanks for helping us make that decision”
“I stream only and $8 is perfectly fine, if they would do better at getting some of their disc only selections available for online streaming.”
“I only use streaming. I would gladly pay more if it meant a better selection though honestly.”
“I feel if they are going to raise prices, they need to have new release movies available immediately. Or there needs to be some added incentive.”
“…for the price they are charging for dvd’s by mail you’d be better off going to a redbox.”
If you are a Netflix subscriber, what will you do between now and September 1st? Please share your thoughts with me.
I can honestly say that I really only use the online stream. Is there anyone else out there not really as affected by this as much as the masses make it seem?