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Will Users Reject Netflix Price Increase?
Posted By Minda Zetlin On July 22, 2011 @ 10:29 am In E-Commerce,Internet and Online Business,Online Marketing,Video | 3 Comments
Customers are up in arms! Or at least, media outlets are up in arms over Netflix’s announced split  of its streaming service and by-mail disk service into two separate subscriptions starting at $7.99 a month each. For users who currently get one disk at a time plus streaming, that translates to a near-60 percent price hike, from $9.99 to $15.98 per month.
Michelle Castillo announced on the CBS website  that she’s “breaking up” with Netflix as a result. Atlantic  editor Daniel Indiviglio gives seven reasons why this is a “bonehead move,” claiming that if half the current disk renters don’t go for the extra streaming charge (he and his wife plan not to) profits could drop 95 percent.
With all due respect to these experts, I think they’re wrong. Our household may be atypical, but I believe it’s the way of the future: We no longer have cable or any other for-pay TV service. We stream Netflix to our televisions, as well as several mobile devices, and we never for a moment considered giving up the streaming service. My husband thought we might drop the disk service, but as nearly everyone has pointed out, much of the good stuff on Netflix isn’t available for streaming, at least not yet.
I think three factors will work in Netflix’s favor:
Are the pundits right, or am I? We’ll know in about ten weeks.
Article printed from Inc. Technology: http://technology.inc.com
URL to article: http://technology.inc.com/2011/07/22/will-users-reject-netflix-price-increase/
URLs in this post:
 Netflix’s announced split: http://www.pcworld.com/article/235556/netflix_to_raise_monthly_prices_by_as_much_as_60_percent.html
 CBS website: http://www.cbsnews.com/8301-504943_162-20079186-10391715.html
 Atlantic: http://www.theatlantic.com/business/archive/2011/07/7-reasons-why-netflixs-price-hike-is-a-bonehead-move/241869/
 43 other countries: http://technology.inc.com/2011/07/06/netflix-to-reach-43-new-countries/
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