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Thursday, July 14, 2011

Is money, instead of customer service, a priority for Netflix?


According to David Pogue, of The New York Times, Netflix will increase their subscription 60 percent on Sept. 1 for any existing and new customers. The service provided by Netflix allows customers to stream movies and television shows to their computers, droids, and game consoles and soon to be Nintendo 3DSs.


The movie rental company who had a significant role on putting out of business many other movie rental companies (like Hollywood Video, and, almost to be out of business, Blockbuster Video) will start charging customers $16 dollars instead of the normal $10.


Changing the price in an almost overnight like situation has irrated many of Netflix's customers. On the Facebook page of Netflix, there has been over 44,000 messages concerning about the change and many of them will be canceling their subscription with the company and why or what are the reasons of Netflix upping of the price.


Many have questioned the motives behind Netflix and why they are doing this. The statement that Netflix made on their blog makes no sense as to the reason as it says,  "Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering.” 


So there is not a change to the renewel of contracts with the movie companies nor about the prices of inflation??? 
If a better strategical action of making more money was created by Netflix of raising their prices, there wouldn't be such a tremendous amount of retaliation from it's customers. 


http://pogue.blogs.nytimes.com/2011/07/14/why-netflix-raised-its-prices/?src=mv&ref=technology

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