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?
