Sad, sad, sad. The world’s best deal in TV and movies has just gone away.
I refer, of course, to Netflix’s $10-a-month deal: unlimited DVDs by mail and unlimited streaming TV shows and movies.
This week, Netflix abruptly jacked up its price for that deal by 60 percent. Now, if you want to check out one DVD-by-mail at a time, and enjoy unlimited streaming of Netflix’s 20,000 TV shows and (mostly older) movies to your computer, phone or Blu-ray player, you have to pay $16 a month instead of $10. (The price hike hits new customers immediately, and existing customers on Sept. 1.)
This, as you can imagine, is not a popular decision. This isn’t a cost-of-living increase. This isn’t inflation. It’s a 60 percent overnight price increase — that gives you nothing new in return.
No wonder people are irate (even if they weren’t good spellers):
“I was a loyal NETFLIX subscriber since 2005,” goes one of the 44,000 seething messages on Netflix’s Facebook page. “Since they have grown into this BIG GREEDY CORPORATION in the past few years, they’ve decided to hit its loyal customers with a 60% increase in fees and expect us to pay it! WELL NEXTFLIX AS OF 31 AUGUST 2011, CANCELL MY ACCOUNT!!!!!!!!!!!!”
All over the Web, you can read analysts explaining the backstory this way: “Why, when Netflix first unveiled its streaming feature in 2007, nobody else was streaming this stuff. To the TV and movie companies, it was free money. But now, all those contracts with Netflix are up for renewal, and the movie and TV studios are all charging Netflix a lot more!”
Read the entire article here:
Why Netflix Raised Its Prices – NYTimes.com.