They weren’t many rumors hinting at a possible price hike in Netflix’s plans, so when the news came in of the nearly 60 percent hike for those with 1 DVD and streaming, most where startled. Netflix had two services, instant streaming of content you don’t want to see, and DVD’s by mail. While you do have to wait those pesky 28 days before they can ship you new releases, Netflix had of those great company success stories. So why would a company with near perfect prices threaten to lose so many loyal customers? It’s simple, no one puts their money where their mouths are.
Let’s say you’re one of the average Netflix customers, paying for a monthly plan of 1 DVD, and unlimited streaming. You’re paying $9.99. Now lets say you want to keep your plan even with the new prices. 1 DVD at a time will cost you $7.99, not bad, ehh? Now, this is where its get expensive, unlimited streaming, that will also cost you $7.99. Ranking in a total of $15.98 plus tax. Pretty expensive, right? Netflix sent out a mass email explaining the new pricing to their. In so many words, they also told stated that they would not grandfather customers either, so no matter where you turn, you’re stuck paying the new prices. This is putting a sour taste in many people’s mouth.
Let’s take a look at Netflix competitors, Redbox, no streaming, just DVD’s. While Redbox maybe cheaper, at only 1 dollar every night you rent a movie, it lacks something Netflix has. No, it’s not streaming, because who wants to watch reruns of TV shows that got cancelled so quickly, you never got a chance to even hear of them. It’s convenience. Netflix ships right to mailbox, if you want you can walk to it in your pajamas, yet with Redbox, it’s difference. You physically have to go to a Redbox box in your neighborhood. Now if you have a Redbox near you, and you don’t mind going to one of its vast locations, then Redbox is for you. That doesn’t seem to be the case with most people though. Just look at sales, Netflix has well more sales than Redbox, heck, they plenty of people who don’t even know of Redbox’s existence.
I guess in the end folks, it all comes down to whether Netflix’s price increase is enough to make you cancel your plan, and hop on over an alternative. Perhaps Blockbuster? Who knows, this is a perfect time for Blockbuster to start using up the last of their money on commercials. Any movie renting company is getting a perfect opportunity to capitalize on the stupidity of Netflix. Sure, you can say the “Netflix has to raise it prices, because the price of a DVD is up” but thats just not true. Go to any Best buy, Blu Ray prices are down since when they first came out, yes, there still more than a DVD, but the price is still down. Due to the rising popularity of Blu Ray, the price a new DVD is down too, by a lot. Theres still a lot we don’t know on why Netflix is raising its prices, or if they will lower them back to the original ones we all loved before, but there is one thing we do know, there gonna lose a big chunk of costumers.