Netflix angers the nation with price hikes

Netflix, prior to the annnouncement of their price increases, used to be the go-to service for DVD rentals.

But it seems like every product is getting a price hike lately, so why the outcry for NetFlix?

Well, they are raising their prices 60%!!!!!! That’s more than DOUBLE their old price. In addition, they are incorporating separate DVD and streaming plans that used to be included.

Today.com reported that an estimated “12 percent and 15 percent of dual-service Netflix subscribers will in fact cancel their service in the next six months specifically because of the new pricing scheme.” This equals out to about 2 to 2.5 million subscribers.

Will this hinder their reputation as being the #1 DVD rental company? Only time will tell.

So why did NetFlix announce the increase in the first place? Well, according to Yahoo!, the price hike was in part due to the fact that “the company miscalculated how many people still want to receive DVDs by mail each month, a more expensive service to provide compared with its streamed Internet videos.”

In essense, as soon as they introduced streaming internet media, they predicted a huge response, however, they did not get that. As a result, they lost money and are currently trying to get that lost revenue back. Hence, price hikes.

Now, the question is, do you have NetFlix? If so, will you continue to use their services? Comment and let us know!