Remember the whole Netflix price increase of a couple of months back?
Sure, you remember.
Well, okay, it wasn’t actually so much a price increase as it was a cessation of a discounted bundle. Which made prices go up. Which is a price increase. So, yeah, it was a price increase.
Netflix was offering 1 DVD a month at a time per month (usually around 8 a month if you watch it an return it next day) for $8 (actually, $7.99, but that might as well be $8; we’ll round up to the dollar from here on out). As I was saying, 1 DVD a month at a time per month for $8. They also had unlimited streaming for $8 a month.
And they still do.
Here’s what changed: If you had a combined service — 1 DVD a month plus unlimited streaming — it was $10 a month. That’s what went away. Everything is separate now. They stopped the combined package for a discounted rate. And, that ticked off a lot of people. Including me.
Now, it seems that there will be no more Netflix DVDs. Instead, they’re changing the DVD service to Qwikster. Netflix will remain streaming movies. Flicks. Or “flix” if you will. On the ‘Net. Netflix will actually be Net flix.
About that whole mess where everybody got mad at Netflix? The founder of Netflix, Reed Hastings, wrote a blog post about it, apologizing, and explaining the separation of services into two different companies.
How’s that going over? Not too good. At least, based on the thousands and thousands of comments left to his blog post.
How’s business?
Netflix itself has estimated that its customer base is declining by about 1 million people during the current quarter, which ends Sept. 30.
I haven’t seen this much blowback on screwing up business since … New Coke. Or Obama.
How Netflix handles it will be interesting. Will they do like Coke did and bring back the Classic formula that made them a success?
Or will they give another speech.
I’m betting on the latter.
Now, the question is, which is out of work first, Netlfix or Obama?
And does this make Rick Perry Hulu?
Netflix knew about the upcoming Post Office kablooey before most of the genital pubic I mean general public. That’s why they decided to split up the services. Who really wants to rely on an aging decrepit public sector union cancer that’s about to explode into a fireball of spoon-fed pus? (I write like this only before 9am.)
I stuck with the streaming service because I don’t like all that encrusted pus on my mail.
Redbox ma’ boy! 1 dollar per movie per night! And they are vending machines and are all over the place!
I canceled my subscription, but I was going to do it anyway. I’d scroll for 30 minutes trying to find a movie I would watch (DVD or streaming). I may get the subscription again in a few years when there are enough movies to justify having it for two months or so.
What I find interesting is that there isn’t a “Netflix of porn.” It’s not like their studios would charge a lot for access. I mean, it would be another sign of our society falling off the edge, but how did that industry NOT recognize this business model?
Reed Hastings, Co-Founder, CEO, and killer of Netflix…
Meh, Redbox makes me get into the car and go into town, as if just having to get off the couch wasn’t already a major imposiiton.
Netflix will handle this the same way they’ve handled their past fiascoes; “Shut up; sorry you’re too stupid to understand.” I’m pretty sure their PR department is made up of DNC PR rejects.
I for one have bailed and won’t be back, along with another coworker and one who’s ended their streaming. There are always other options, a fact which to which Netflix seems onblivious.
About Redbox…
They have apps for iPhone and DROID. So, if you’re at work and want a movie, it can have one waiting on you at a box you choose. Like Raving Lunatic, I won’t get off the couch to go to Redbox, but I will order one and pick it up when I get off work.
“All good things must come to an end, but all bad things can continue forever.” – Thornton Wilder
Could apply to Netflix but hopefully our bad President and Congress can’t continue forever.
To be fair, it is not 1 DVD a month, it is one out at a time. Currently that gives me about 8 a month (2 a week) assuming I watch them the night I get them and put them back in the mail the next day.
Not that I like what they are doing, but it isn’t 1 DVD a month for that price…
Jake:
You are correct, and I’ve added the clarification to the post. Thanks for pointing that out.
Does Netflix get movies before they’re normally out on DVD or something? Because by the time a movie’s out on DVD (and often times before), it can be found online for free. As can all TV shows several hours after they first air.
Or maybe Netflix is for less computer savvy people, or those who have questions about the morality/legality of “acquiring media for free” on the internet.
But of course, I wouldn’t know anything about that. I;m barly computer literate. I don’t even know how to post comments on blogs. Now what does that button do…
Netflix made a bad business decision that has resulted in a loss of revenue. Their best bet now is to contribute thousands of dollars to the Democratic party in order to become eligible for millions in stimulus money. It’s the American way.
This is the most coherent explanation of the changes that I could find:
http://www.theoatmeal.com/comics/netflix
Reed is a moron, and he’s stuck. He’s trying his moronic best to appease the studios who prolly want a bigger share of the take in the form of a per view royalty. On the customer side, he introduced the streaming service by making it “all free.” That’s not a viable plan. I bet he’s a liberal.
Prediction: the studios hold the power in this arena. All else is delivery. Look for them to partner with Google or Hulu.
I know no one likes price increases, but they really didn’t have much choice. I don’t know how many people actually have paid attention to how much postage has increased in the last few years, with dire warnings on the horizon for whatever moves the Obama/Soros administration will authorize for the future as the postal management just keeps raising prices while cutting services, and increasing the problems. But, if your mailing costs total more than your income, you’re no longer in business – unless you’re Obama, in which case you just raise taxes or borrow it from China – but, NetFlix doesn’t have that option.
I stopped service when I would order a DVD and it would automatically go over to my streaming que.
Literally couldn’t get DVDs anymore. Bye bye.
I’m guessing the studios saw the membership, multiplied it by $X and said, “We can make millions more just be charging more!”
I don’t think it crossed their minds that millions would just cancel subscriptions, either wiping out the gains or causing a loss.
Who could possibly watch eight movies a month?? Don’t you people have jobs??? Are there even eight good movies a year???????
HooooooooolooooOoo!!!!
I’ve never used Netflix DVD service. I just started using the streaming service about April when I got a Roku. I think I’ve seen a couple of movies with it. However, I do watch a ton of TV episodes. I’m watching Firefly now. I tried to get into Battlestar Galatica, but couldn’t. Watching all the original Star Treks was great. And when I can’t sleep, I watch Top Gear.
So long as that service continues, they have me as a customer. I have HuluPlus, but I’m about to ditch it. I can’t stand the commercial interuptions, but worse, usually the commercials mess up the stream. I’ve kept Hulu, because they usually have current series a few days after airing. That was useless this summer, but we’ll see what the fall brings. Hulu is better than DVR, because the ads are only 45 seconds (normally) and you don’t have to worry about missing something.
Anyway, I watch way too much TV, but I live in an Obama economy, so I do what I can.