Will Netflix change there new charges?

[TwisTtheTwiTcH]

A number of users for the number one online rental service have taken to the web to bash Netflix for it’s recent hike in prices and packaging options. Users who at one time paid $9.99 USD for a hybrid account allowing them to rent a single DVD at a time and maintaining unlimited streaming now have to pay two separate fees that come to a total of $15.98.


A poll which was held by cNet showed that fifty-five percent of 18,000 polled members of Netflix subscribers will cancel their subscriptions if the rates and packages do not change. Now let it be known that these do reflect the entire user base’s opinions because that would be impossible.  However it does grant us a great insight into what will likely happen to Netflix if things do not change in the near future.

The price hike is going to take place on September 1st 2011. This is the date that users have given as a deadline for the price change to be nullified or they will cancel service. These polls could be a clear indicator of what is to come for the more than 23 million customers.

Now anticipating users will leave Netflix, Blockbuster is offering a free thirty day trial to anybody that can prove they are a current Netflix customer and grant them the Total Access Coverage. However Block Buster does not actually stream media. After the free trial users who maintain membership will pay 9.99$ to have a single disk out at a time, yes including games. They may also opt for a $14.99 membership and take out two disks.

So what is it to you, users? Will you drop Netflix if they want your arms and legs as payment? Netflix spokesman Steve Swasey said earlier that “These are our prices.”
-TwisT

[Modded Matt]

I got the email from netflix, and plan to cancel my plan when they raise the rates (not if, when) I just dont think its worth it. I will keep the streaming, and use redbox. roumor has it redbox will soon be offering unlimited monthly packages, and they are starting to rent games!!

[whitetop]

not to over ride your post twist just a add-on

quoted from pc world

Netflix knew that price hikes would lead to outrage and cancellations, and the company is showing no signs of backing down to placate critics.

Netflix spokesman Steve Swasey told CNet that the company added extra employees to its customer service department and prepared them to handle angry calls.

This week, the company separated its DVD-by-mail and streaming services, charging a minimum $8 per month for each instead of $10 per month for both. The price change is effective now for new subscribers and Sept. 1 for existing customers.

"We tested, we researched, we analyzed," Swasey said. "We knew what the reaction would be. We are not surprised."

Even so, representatives struggled to keep up with incoming calls. BTIG Research analyst Richard Greenfield reported wait times of 9 to 15 minutes after placing 35 calls over a two-hour period, according to CNet. When I tried calling Netflix's customer service line Wednesday, I got disconnected.

Greenfield said Netflix was not offering any deals to people who threatened to cancel. "This would appear to illustrate that Netflix is simply not concerned with the prospect of losing customers," he observed. When CNet's Greg Sandoval asked Swasey whether Netflix would backpedal on pricing, he simply replied: "These are our prices."

Netflix Not Surprised by Backlash Over Price HikeSo why did Netflix move to a pricing plan that it knew would tick off customers? Simple, says Peter Kafka at All Things Digital: Netflix wants users to cancel the DVD side of their plans and switch to streaming-only for $8 per month. By pushing people away from DVDs, Netflix can accelerate the process of becoming a streaming-only company.

Of course, Netflix isn't saying that publicly. There's still a huge demand for DVDs, Netflix's Jessie Becker, another company official, explained on Netflix's blog, and offering them as a $2 add-on " neither makes great financial sense nor satisfies people who just want DVDs." The subtext may be that Netflix wants more people to stream, but it doesn't sound like the death of physical media is imminent.

This could be the very argument that Netflix takes to movie studios as it tries to negotiate favorable terms for streaming content. As Wedbush Morgan analyst Michael Pachter noted, isolating DVDs allows Netflix to argue that a lesser number of subscribers are streaming. But that argument falls apart as more people ditch physical media, which is reportedly what Netflix wants in the long-run.

Whatever Netflix's motive, it's not going to change just because of angry blog posts and Facebook comments. That much was expected.

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[snowcolt17]

all i have is streaming. im good. thanks for the info twist

[Sammy]

all i have is streaming. im good. thanks for the info twist

Same as me, i think ill keep it.

[TwisTtheTwiTcH]

Sorry for some of the mistakes in the article, I was using Dragon and on ambien at the time, so some of the mistakes escaped me.

-TwisT