Netflix Price Increase Infuriates The Interwebs

Well, what did you expect?

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Netflix Price Increase Infuriates The Interwebs
[ Social Media]

I’m sure that when the people over at Netflix submitted their blog post about the new prices yesterday, they expected some level of backlash. How could they not? In short, they turned a service that cost $10 into a service that costs $16 without adding anything new.

People love to get something for nothing, but when you announce nothing for something, well, you’re inviting trouble.

If you somehow missed the news yesterday, here’s a quick rundown – Effective September 1st for current members and immediately for new members, the DVD plans will be separate plans – apart from the streaming plan. Unlimited streaming will still cost $7.99 a month but now, instead of a $2 add-on, the 1-DVD-at-a-time feature will be its own plan also costing $7.99.

This amounts to a 60% price increase for people who still wish to keep streaming and DVD services.

Today, in the aftermath of that announcement, the internet has exploded with frustration, betrayal, and rage. A current top trend on Twitter is “Dear Netflix,” and as you would expect the 140-character letters are not too kind. Check out some of the top “Dear Netflix” tweets –

Dear #Netflix, your 60% increase is the perfect opportunity for someone else to come in on a market you had comfortably cornered. Good luck. 16 minutes ago via TMF – Social Media Updater · powered by @socialditto

Dear @Netflix, it got rocky when you lost my #Dexter. Yet we reunited over seasons of #MadMen. But now you want too much from me.It’s over. 2 hours ago via Echofon · powered by @socialditto

Dear Netflix, I got your breakup email. Sorry to hear you don’t want me to be with you anymore. 3 hours ago via Twitter for Android · powered by @socialditto

Dear #netflix, You can’t double the price of a product without providing more value. Bad business move – #redbox here we come. 1 hour ago via web · powered by @socialditto

Dear Netflix, Fuck You I Quit. 18 minutes ago via web · powered by @socialditto

“Front page of the internet” Reddit has also been inundated with posts about the Netflix price increase.

Yesterday, we asked what’s next for Netflix users? Will users just pony up the extra cash? Will they drop one of the services, either streaming or DVD? Will they now feel justified in pirating the movies they want to watch?

One prevailing thought it that cheap DVD rental services like Redbox and the Blockbuster kiosks will truly be the ones to benefit from Netflix’s price shift.

Many are saying that they will keep their $7.99 streaming plan and simply head to Redbox for a $1 new release when they can’t find what they want to watch on Netflix instant. Maybe that’s what Netflix is counting on, as I speculate that this new price shift is the first move in Netflix phasing out physical DVDs altogether.

It’s easy to get caught up in the rage of a 60% price hike, but for a little perspective on this whole thing, we turn back to Reddit

Netflix Price Increase Infuriates The Interwebs
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  • http://www.michaelhamburger.com Michael Hamburger

    I think this is total baloney! I will be keeping my Netflix account until Sept. 1 and then I am done!

  • Freedomrider

    I could see a Maybe Buck or 2 increase… But a $5.00 increase for NOTHING new Added. GOOD Bye NETFLIX…..STUPID Bunsiess Decision, What you THOUGH you were going to GAIN. Guarantee it wil be a LOSS in this economy.. STUPID and Greedy is as STUPID and Greedy DOES…

  • Marc

    Granted the increase is roughly equivalent to a Starbucks latte but think about what you’re getting:
    1. 30 day delay on majority of new releases
    2. Very long wait for new releases if you don’t get them when they first come out.
    3. Streaming catalog is limited at best
    4. Those ridiculous RENTAL ONLY DVDs

    More and more often I’ve been heading to the local Redbox to get my movie fix. Welcome back Blockbuster, Hollywood Video, & the local brick & mortar!

  • SoS

    It’s too high. I had been increasingly questioning my membership before the latest price increase.

    Now, this is only example, but honestly…

    I started watching Fullmetal Alchemist Brotherhood. The first four discs are available streaming, and then the next four are available on DVD, while the last two are available through neither service. Meanwhile, on Hulu, at no charge at all, I can watch every single episode! WTF?

  • Rob

    If a majority of users cancel their subscriptions, Netflix would have to reconsider their price increase. Since there is no penalty for cancellation of your service and later deciding you can’t live without it, why no put your money, or in this case lack of money, where your mouth is. I’m canceling, how about you. Put the word out to all your friends, spread the word. Lets put real pressure on Netflix to reconsider.

  • Jim Douglas

    Thank you Netflix….now I can get up off my butt and work around the house and you can take your streaming and those DVD’s and stream them up your rear. Rather pay $16 bucks a month at Redbox for 16 relatively new movies….

  • Robert

    Dear Netflix,

    I hate you….


    I am canceling your service.

    P.S. Cinema Now is going to wreck your Monopoly.

  • Nicky

    Some people think our reactions are over the top. I disagree. As someone who uses both the streaming and the rental I know that the online streaming selections have always been INFERIOR to the physical dvd selections. Thats why they gave it to us for free- it was mostly B-rated crap. They wouldnt’ have a movie like Tron or Star Wars, but if you wanted something called ‘Zombies vs. Nazis’ they’ll have it. Not to mention that they take things down periodically. I still had to get more than half my movies by mail anyway. I’ll probably switch to Blockbuster- they have movies AND games. And they have an online service called ‘On Demand’. And no more waiting for crap a month after its been released.

    Dear Netflix,

    Thank you for infuriating me to the point where I researched other options that will ultimately work better for my family’s needs.

  • Shaun

    Josh, you’re making an assumption that is incorrect.

    Many of Netflix’s current customers were not around before they offered streaming. Although I initially had an account then, I cancelled it because it wasn’t worth the money. It was the combination of streaming and dvds by mail that make it a whole product. Individually they are both deficient.

    They’ve effectively returned it to a poor cost decision when there’s even more low cost competition in the market.

    I think the pill that’s impossible to swallow is the size and timing of this increase. They raised prices earlier this year to cover costs, and now they have to come back and raise them 60%? Are we really supposed to believe they have those kind of costs to cover? I don’t.

  • Mike Jones


  • bp

    Just added event reminder to my iphone calendar for August 31 titled “cancel netflix”

  • http://rantive.com Michael Glass

    Let us not forget the first thing Netflix did to lower its consumer value was the greed deal which resulted in the 30-day delay for new releases. At the time, this was explained as being beneficial to members because part of the deal included more new releases available as instant view. It has not happened, of course.

    I wish I could say your prediction about Netflix posturing to an instant-only vendor was prescient, but they said as much a while back in a 60 Minutes piece.

    Good breakdown!

  • adsfasf

    I’ll be cancelling just before the price increase takes effect. One thing would stop me…

    Netflix could “grandfather” in those current members just like AT&T does for various cell phone plans. That’s a way for a company to show its current customers a bit of loyalty, gratitude, etc. for helping the company get to the point they are at today. It would also quell some of the outrage of current customers and let new customers make a decision based on the new plan prices, which probably wouldn’t be so upsetting to a new customer who’s not used to the original plan price

    It’s a win win, the company grows with a new pricing structure and the original loyal customers get to keep their current plans/prices. Also, as more and more new customers join (if they’re willing to do so at the new price), the numbers of old customers will continue to present a smaller and smaller percentage of total netflix customers compared to the new customers, and netflix can avoid the bad posts they are currently enduring.

    Or, I’ll just quit the service if they go ahead with their current price increase plans on all their customers old and new.

  • Timothy

    Your perspective is off base. The $8.99 a month for dvd only was in the days before $1 Redbox blanketed the land. I used to pay over $2000 for a computer I can now buy one for under $500. With technological improvement and sheer numbers of subscribers should come price drops, NOT 60% PRICE INCREASES.

  • Keenan

    If there are enough outraged netflix consumers out there with the proposed price increase why not promote everyone to put their membership on hold?? Use their own features against them!! You won’t loose your account and lists by canceling but yet hurt their bottom line with enough members participating all at once. I certainly could do without netflix for several months and not miss a thing. Maybe they would get the message then!

  • wrwolff

    Dear Netflix,

    I can’t continue to be with someone who is so inconsiderate that they want more for less. So bye and im wirting you a letter every time I send back a dvd so check the mail bastard.


    Your soon to be gone customer.

  • @droberts0503

    I fall into a group of people who are basically being shown the door by Netflix, hence my tweet. I get 3-5 blu-rays per month and the streaming is only really used so my son can watch Thomas the Tank Engine which is a few hours a week at most. I pay $11.99 a month now which isn’t great value as it is but $7.99 for ~20 hours of streaming a month and $9.99 for 3-5 blu-rays per month is not at all worth it. It’s cheaper for me to by the DVD’s of the things we stream and rent the occasional blu-ray from Redbox.

  • http://cellpig.com Michael

    Unfortunately, Netflix would never be able to operate at the prices that they were charging. They went for the ‘be as cheap as we can’ model, which never works. You need to plan for the future, when you have bills to pay. Hopefully this doesn’t crunch the company, but it’s always hard to tell a customer that you’re jacking your rates up a great deal.

  • jon29

    You can still get good deals on Netflix.
    E.g., first 2 months free on Netflix streaming

  • Kaye

    I was shocked to hear of the increase! Unfortunately they chose to much of an increase for my family. We’ll continue with the $7.99 fee for streaming and like many others, it’ll be the $1 REDBOX!! Hopefully they’ll realize it really wasn’t a good idea afterall.

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