As I’m sure you know by now the movie delivery company Netflix raised its price on customers up to 60% by splitting its streaming option from its DVD by mail option and charging at least $7.99 for both.
As expected there has been a lot of outrage from customers on twitter who are threatening to cancel but at the same time Wall Street is calling their bluff because the stock is currently trading close to it’s 52 week high on the news.
So what should subscribers do?
The Argument For Canceling
In this rough economy, when everyone is struggling to make mortgage payments, but groceries and put gas in their car, a rate hike (especially 60%!) is just unacceptable for a service that hardly qualifies as a necessity.
Yes Netflix provides two easy ways to get movies on Friday nights (by mail or streaming) but the streaming is limited and often times the new DVD releases are back ordered anyway.
The Argument For Staying With Netflix
Yes, the price increase stinks… no customer likes paying more for the same product or service, but Netflix is a relative bargain for people who are looking for affordable entertainment on a budget… have you priced movie tickets for a family of five lately?
Many customers probably use either streaming OR DVD by mail, and will just order one or the other and not really miss a beat and for others it’s worth the extra money, especially if it gives Netflix the money to improve their streaming options.
Are you cancelling Netflix on news of their rate hike? Let us know in the comments below!
Creative Commons Image Credit: _tar0_