Monday, September 19, 2011

NetFlix - 'Fixing' what is not broken

by Nathan Stout (AccordingToWhim.com)

A couple of months back Netflix sends out a notice saying that they are about to split up their services so you have to pay for each service separately (DVDs by mail and Internet streaming).

This is dumb.

Netflix has every other competitor on the ropes when it comes to services offered. Someone in their corporate offices thought they needed to make this change to get more revenue.

This is dumb.

I am thinking they got the Walmart method in their mind but failed to realize that their competitors are on the ropes... not down and out. One day Walmart will have run all other businesses out of business THEN they will have the power to jack up their prices and reduce services and we (the public) will have no choice but to give in a pay more. Netflix 'thinks' they have this now and decided to stick it to their customers but they are just greedy dumb asses and are just going to hurt their income.

We are in a down economy and Netflix was still doing well. When people are down and out you don't raise prices just because you are doing good business. You have to be extra careful in these situations and watch your company's performance and NOT rape you customers.

Anyway Netflix is going to charge you separate prices if you want both streaming and DVD by mail services. This mean if you continue to get both services your bill will go up about one quarter.

Understandably people are getting pissed. So much so that the co-founder sent out an email to customer trying to explain why they are doing what they are doing. They don't win any points with their email which sounds like it's going to be an apology but turns out to just tell you grin and bear it, we're fuckin' Netflix and we will do what we want. The explanation in the email looks to me like they are getting ready to be able to sell their DVD by mail service to some other company.

This decision to divide up their services is loosing them customers. I am about to be one of those. I am going to Blockbuster's DVD rental program. I am sure they will be more than happy to have me as a loyal customer now. Netflix must remember that they still have competitors and by getting greedy they are only making their competitors stronger.

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