Unless you’ve been living under a rock, you’ve probably heard about the Netflix price hike. 
That’s right! Many customers, including me, will see a 60% rate hike to enjoy the same amenities they experience now. Sixty percent! What was Netflix thinking?!?! Clearly they knew customers would be angry because they hired extra customer service reps to deal with the backlash. In addition, a Netflix spokesman said they had tested, researched, and analyzed the situation and knew that there would be backlash, but it was a necessary business decision.
Nevertheless, Netflix customers are mad as hell and they’re not going to take it anymore.
Like everyone else, I was outraged that my bill would increase 60% too, but then I checked out how much I was paying now. I’m paying $9.99 for unlimited streaming movies and one DVD out at a time. With the price hike, I will pay $15.98 per month. Wait, is everyone upset about $5.99? Really?!?!
I can’t even get a single movie theater ticket for $5.99. I could buy one latte at Starbucks, though!
To think critically about the price hike, I think we need to ask ourselves some realistic questions:
- Do you need/use both the streaming and shipped DVD services enough to warrant using both services after the price hike? For example, I’ve had the same DVD of Cats sitting on my shelf since December 2010 (true story). If not, cancel the service that is unnecessary.
- Can you get the same DVD and streaming ability through another service (Amazon, Blockbuster, iTunes, or Redbox) for a lower cost?
- Is the issue that the value of one DVD at a time plus unlimited streaming isn’t worth $15.98? If not, what is the most you would pay for that service, $10.99, $11.99, 12.99? You should be able to quantify the amount you would be willing to pay for the service.
- What value do you place on convenience? For example, is it worth paying a few extra dollars to have a video available immediately online or are you willing to pay less but have to drive to a store or kiosk to rent your movie (and remember to take it back promptly)?
- If you re-frame the price hike by thinking of it as 20 cents per day, does that make you less angry about paying more?
What are the questions you’re asking yourself as you consider the Netflix price hike? Do you plan to cancel your Netflix account?
(Image source #1: _tar0_/Flickr
Image source #2: Someecards)
Editor’s Note: Breanne Harris is the Solutions Architect for Pearson TalentLens. She works with customers to design selection and development plans that incorporate critical thinking assessments and training. She has a Master’s degree in Organizational Psychology and has experience in recruiting, training, and HR consulting. She is the chief blogger for Critical Thinkers and occasionally posts at ThinkWatson. Connect with her on LinkedIn and Twitter for more of her thoughts.
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Liked Netflix, but canceled them altogether. There are other ways to watch streaming TV and movies online. Look at the TVDevo website. There are no limitations to what can be watched online and there is tons to watch. Amazon is good for movies too. Sorry Netflix…
Meg- Thank you for commenting! What was the main factor for leaving Netflix? Was it because of the price hike or because you found a better alternative?
I’m not able to reframe past they increased my subscription 60%, I’ll drop them August 31st. The frustrating part is if they hadn’t been so condescending (“1 or 2 lattes”) and just tone deaf, I probably could have swallowed it. So yes, I’m shallow and petty but I’m not staying with Netflix.
Dave- I hope you don’t think that I’m implying you are shallow or petty for cancelling Netflix. That definitely wasn’t my intention in the post. I think the way Netflix handled angry customers is a whole new reason to consider cancelling the service. They may have expected the backlash, but from a customer service/PR perspective, I don’t think it was handled well.
Breanne – Or what about other alternatives?
How many DVDs by mail does the average Netflix user watch monthly? How many do you watch each month?
If the number is “8 or less” then it’s cheaper, and probably more responsive, to just get them at Redbox. We have 6 or 7 Redbox kiosks just in Leavenworth (Walmart, Dillons, CVS, Walgreen, etc.)
The movies from Redbox are only $1 per night (DVD) or $1.50 (BluRay). Also, they send code for free rental on first Monday of every month, as well as on special occasion (e.g. Mother’s Day)
Now, they do not have the same selection as Netflix, but most of the DVDs being mailed are probably in the “recently released” category which Redbox does carry.
Great post. I agree with you 100%. But Mabe You Check
I am dropping my subscription with Netflix because of the 60% increase and because of the split. Look I am a college student $5 means everything to me at this point. Less than $10 it was ok to pay for but the raised price… Forget it. Netflix was just a convenience for me, it had everything in one place. Now I’ll just have to scour the web for free shows and movie streamings.
Netflix is also being very arrogant about this whole ordeal. Not worth the $16
Vincent- You are definitely in good company considering that Netflix’s subscribers have decreased by 50%. Ouch!