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Saturday, July 16, 2011

Post # 191 - Netflix and Their Price Incease Way of Thanking Us

This note appeared in my inbox on 7/13/2011:

Dear Jerry,

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

   Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
   Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the
Plan Change page in Your Account.

We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.

–The Netflix Team

Dear Netflix,

In April, it was announced that your earnings were up 88% from a year ago.  I'm sure you were grateful to your loyal and growing consumer base.  So grateful, in fact, you decided to make some changes to your plans.  You decided to split the plans to "better reflect your costs."

Thank you for better reflecting your costs.  They are definitely more reflective now.  And it's great that people have a choice between one, the other or both.  For me to keep both one disc at a time and streaming, it's a 60 percent increase.  Thank you!

I appreciate my choice.  And hey, don't worry about the 60 percent increase--I just received a 60 percent raise.  I was actually wondering, as many people do, how I would spend my extra cash.  The odd thing here is the timing.  Blockbuster is more or less done, and they were your main competition.

Most companies sort of gradually increase their prices, in concert with inflation.  Not you though.  But at least you reassured me by pointing out that "I don't need to do anything to continue my memberships for both unlimited streaming and unlimited DVD's."  I was worried that I'd have to do something to accept the price increase.

What does "Better Reflect Our Costs" even mean?  That's a big pile of smelly poo hidden in a delightful, warm, moist, freshly baked whole wheat submarine roll.

You'd better wake up.  This decision has a LOT of people talking--people who turned to you when movie theatre ticket prices became too expensive.  People are still down and struggling.  Underemployment, mounting debt, and now a 60 percent increase on their Netflix bill.

Stay Classy.

My email was bounced back.  As it turns out, there is no way of actually emailing on the Netflix site, which I find to be odd.  That probably means that all they have are phone people.
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