@Netflix Doesn’t Get It

netflix logoApparently Netflix either doesn’t get it or they just don’t care.  Reed Hastings, the CEO of Netflix, recently said, about customers complaining angrily about Netflix’ jacking up their prices 60%, the

noise level was actually less than we expected, given a 60% price increase for some subscribers. … We knew what we were getting into.”

Oh, I see.  The customers level of dissatisfaction over the new subscription rates was merely “noise level” that was “expected.”  But Netflix did nothing to prepare customers for this, didn’t try to explain anything, and in reaction to what they “knew they were getting into,” the “noise level,” they insult their loyal customer base by referring to their customers’ shock as “noise level.”

It is expected and unfortunate that our DVD subscribers who also use streaming don’t like our price change, which can be as much as a 60% increase,” Netflix said in its earnings release.

The company acknowledged that “some subscribers will cancel Netflix or downgrade their Netflix plans, [but] we expect most to stay with us.”

Analysts asked several questions about the price hike on a post-earnings conference call. One question noted the thousands of comments on Netflix’s own blog announcing the new pricing strategy, as well as tweets under the hashtag #DearNetflix.

Source:  CNN

Netflix keeps talking about the 60% increase.  I must remind Netflix customers that we all had a rate increase just a few months earlier.  This is more like a 100% rate increase from that original rate–double!

So, as big studios and content providers try to strangle streaming services (Netflix streaming content licensing costs will rise from $180 million in 2010 to $1.92 billion in 2012.  Who ever could have known?!  Hah!),  Netflix arrogantly drops the ball*, bungles customer relations, and probably just began its journey into the history books, like Blockbuster.  Yesterday Netflix stocks were down.  They anticipate a poor third quarter as customer flee in anger.  Pity they weren’t more astute.  I liked their service.

So, I’m using them as much as possible until the end of August.  Then, it’s bye, bye Netflix just before their rate hike.  Especially because of Netflix’ arrogant response and their expectation that, regardless of that arrogance, most of their customers will not leave, join me in dropping their service.

*I suspect, but have no proof, that Netflix was the source of those nasty articles about people crying like little babies over having to cough up the “real cost” of entertainment in today’s world–never mind the fact that the cable providers that bring everyone Netflix and the internet are already gouging the hell out of their customers with grotesquely high rates.  The articles appeared just after Netflix announced their “60%” rate increase.  Yeah, that was smart.  Is this company really that arrogant?  Since it all starts at the top, I bet Reed Hasting is a piece of work!

2 thoughts on “@Netflix Doesn’t Get It”

  1. I understand somewhat the level of unhappiness you are at, but if you look at Netflix’s company name it appears the intention was always to become a streaming flix on the net kinda company. I am thinking the logic behind the new business model is to complete the original theory business model. Movies via mail was just a way to get the revenue up to allow the company to build up to the point they are at now. This is just my personal opinion. Be well 🙂

    1. I first came to know Netflix, through my friends, as a DVD mailing service, and a really good one. If they want to really focus on delivering content via internet streaming, they need to come out and say so. But their CEO has stated publicly that they want to continue DVD shipments and have no plans to spin that division off and sell it. If all they want to do is kill the DVD, I think they will fail. I think people like having a physical DVD in their hands. Customers are not simply revenue streams, and with the current infrastructure design, I personally believe streaming only services will ultimately fail.

      The two services together have enough content to survive. Neither service alone has the content resources to be a successful business model.

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