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Monday, October 10, 2011

Is Netflix Finally on the Right Track?


Have you heard the news?  As of this morning Netflix has announced that they will not be splitting their services and creating a new company for DVD mailing only called Qwikster.  

When I heard the news I was excited.  Maybe the CEO’s at Netflix had listened to the one million customers who fled when they made these outrageous changes.  I hoped that they had listened to the complaints regarding the price hike in service, a rate increase of 40%.  Or the complaint that they had just raised the rates by $2.00 last year, which is a rate increase of 20%.

As I read the news article I couldn’t believe it.  Nothing.  That is what is really changing.  They are saying a bunch of fancy things, canceling Qwikster and that’s it.  The price structures are staying the same.  There is no formal apology offered.  Although they do offer an explanation finally for the rate increases, which to me sounds like someone whining like a child who has had their favorite toy taken away. 

The CEO is stating that it costs almost a dollar to mail the heavy DVD’s back and forth.  But how much does it cost them to stream?  They are neglecting to mention that.  Also, the thousands who keep a movie forever, therefore saving Netflix tons of money.  Or the outrageous prices that they charge if you break a disc.  Have you looked at their earning statements previous to the changes they made?  They were making good money and increasing all the time, which is saying a great deal considering the current crisis with our market.

So why would you change anything at all?  Why fix what isn’t broken?  I personally have seen no real explanation as of yet, and until I do I will continue to boycott Netflix, choosing instead to use Hulu and free online services for my television and Redbox for my movies.  I will also make up my own mind as to why they made the moves they did.  They were greedy. 

Netflix, I challenge you to prove that you can do right by your customers.  I’m not your CFO or your CEO.  I don’t sit on your board.  But do you know what who I am?  I am one of the people that helped to pay your salaries ever since you opened your doors.  Here are my suggestions, as a past customer

1.  Lower the prices back to what they were or
2.  Lower the prices half way back to what they were and offer three months free to returning customers.

Number two would possibly get back part of the million customers that you lost.  I look forward to the future developments here and I sincerely hope that you will do the right thing.

You can go here to read a news article regarding he change to Netflix.

2 comments:

  1. Times like these make me glad that I am a DISH subscriber. The Blockbuster Movie Pass allows me to get unlimited access to over 100,000 movies, TV shows and games by mail even new releases! As a DISH employee I can tell you that you can start streaming thousands of on-demand titles right to my TV or computer.

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  2. That is really excellent! It makes me wish I could afford cable. We're currently in the position where cable is one of those we've had to cut. But if we ever get back to the point where we can afford it, I'll look into Dish.

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