You may have noticed that Dear Netflix became a trending topic on Twitter yesterday, well this is because Netflix has decided to increase the price of renting a DVD. In a blog released yesterday, Jessie Becker, the VP of Marketing of Netflix, informed users of the changes. The plans that allowed users to combine streaming and DVD rental is gone. Users were previously allowed to select the streaming plan for just $7.99 with an additional $2 to get the DVD rental package. Now the two plans have been separated, users still pay $7.99 for the rental service but they now have to pay an extra $7.99 to acquire the DVD package. In all to get both users have to pay $15.98 instead of the $9.99 they used to pay. In numerical terms that is a 60% hike in prices. For people like me who already use Netflix, the changes won’t kick in until September 1st but for new customers, the changes start immediately.
The company points to a large continuing increase in the demand or DVD’s to be the major reason why there is an increase in the price. (But isn’t it meant to be the other way around, the higher the demand, the lower the price). Netflix also attributed the hike in price due to the DVD rental becoming a proper business rather than an add on.
Not surprisingly, users of the product were not thrilled with this idea. Thousands of fans wrote on the Facebook wall, most of them angered by the change, users also commented on the Netflix blog citing their frustration at the company. A lot of users have threatened, that if there is no change or price reduction, to stop using Netflix. I’m pretty sure that Netflix’s competitors such as Red Box and Blockbuster are smiling at the backlash the company is getting.
Personally, Dear Netflix, although I enjoy using your service to watch shows like Arrested Development at 7am, i find this price hike to be too sudden and disrespectful to the users. So please do something about it. Thank you.
What do you think about this change? Have you become so fond of Netflix that this change wont affect your use of Netflix or is the hike too ridiculous to continue using Netflix? Let us know in the comments below?
Tags : Blockbuster, DVD, netflix, Redbox
