People really hate the Netflix price hike

Wed Jul 13, 2011 1:26pm EDT

Subscribers have been up in arms since Netflix announced a changed pricing structure on Tuesday that will raise the price for a combined DVD and streaming subscription from $10 to $16 a month. The company is also offering DVD-only and streaming-only subscriptions for $8 a month each, but most people don’t seem to like the prospect of having to choose: The Netflix blog has seen more than 4,200 comments, most of which are negative, with a number of customers threatening to cancel.

Countless consumers have also turned to the company’s Facebook page, with negative feedback far outweighing any other kind of response. And on Twitter, the discussion around the plan changes has made “DVDs” an unlikely trending topics in a number of cities. Check out a few highlighted tweets to see how people feel about the company’s plans:

View the story “Reactions to the Netflix price hike” on Storify.

What does all of this uproar mean for Netflix? Of course, it’s unlikely that any price increase would be met with a thumbs-up by many consumers. However, the intensity of the backlash seems to suggest that Netflix really does have a problem.

Netflix has long enjoyed a lot of good will from its customers, simply due to the breadth of its DVD offering. Consumers tolerated the lack of selection in the company’s streaming catalog because it was seen as a value-add to their existing DVD subscription. Recent hiccups, such as Sony removing titles from the streaming catalog, also didn’t lead to many complaints.

However, with streaming and DVDs effectively being separated from each other and users being forced to pay twice as much, many customers are seemingly losing their patience with Netflix. The company may have to go back and do a better job at explaining these changes — or even unveil some great new streaming catalog additions before the September 1 deadline that will force people to pay more, choose between streaming and DVDs or cancel altogether.

Image courtesy of Flickr user soukup

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Comments (8)
LynCe wrote:
Stupid. Great opportunity for a competitor.
(Silicon Valley movie aficionado)

Jul 13, 2011 2:28am EDT  --  Report as abuse
Hilltoons wrote:
The significant price increase is bad by itself…mainly because the Netflix new release DVD offerings have diminished. (Less availability, longer waits — and more often than not, the new releases which are available at stores, are now delayed due to contracts with movie studios.)

But worst of all, this is the second price increase they have instituted in less than a year.

Jul 13, 2011 3:00am EDT  --  Report as abuse
gk_2000 wrote:
They would have to promise great expansion in streaming. I would pay them $15 for streaming, if it includes everything I need. Let’s ditch the dvd’s

Jul 13, 2011 3:19am EDT  --  Report as abuse
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