As a UK Netflix customer, if I were to leave Netflix, it'd be because of their crackdown on VPN use. UK content is really bad in comparison to US, and it's a really huge deal breaker for many people. I can imaging this being among the top reasons who unsubscribed.
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Netflix Faces 'Unexpected' Loss of Subscribers Due to Monthly Price Increase
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I highly doubt people dropped off because they heard about a $2 price increase through the grapevine and decided to cancel.
Far more likely, people have dropped off in droves as the content continues to turn over at a rapid pace. Stuff I watched last year, last month, last week isn't there any more. The constant turn over makes it impossible to calculate the value. I don't care about their original programming either...to me that is not value.
To me, the value in Netflix is knowing that "x, y, and z" are available to stream at any time...and when I go to stream it and find that its GONE without a trace, the value just went down.
They don't add new content that makes me appreciate the service, as fast as they remove content that was once my reason for having the service.
Far more likely, people have dropped off in droves as the content continues to turn over at a rapid pace. Stuff I watched last year, last month, last week isn't there any more. The constant turn over makes it impossible to calculate the value. I don't care about their original programming either...to me that is not value.
To me, the value in Netflix is knowing that "x, y, and z" are available to stream at any time...and when I go to stream it and find that its GONE without a trace, the value just went down.
They don't add new content that makes me appreciate the service, as fast as they remove content that was once my reason for having the service.
I suspect that we will see a lot more of this in the future. People will reject greed when there are alternatives. Frankly watching TV is a pretty terrible alternative for recreation.
Competitive n is good but it isn't all coming from alternative TV sources. I see a lot of people these days shutting the tube off to pursue other leisure time activities.
It isn't a bad idea to create new shows, what is bad is if the shows try to send the same old tired message often with an extreme liberal slant. The other big problem is thirty variants on the same theme, like zombie flicks. OK I like zombie flicks as much as the next guy but a crappy production just wastes everyone time. The industry has a habit of trying to chase successful themes with generally or results. Even if Netflix created something new it wouldn't be worth the cost, in my case even before the price increase.
Frankly I'm hoping more people cancel Netflix, this sort of corporate behavior needs to be crushed.
But that kind of thing isn't something that just started happening in the last month or two or so, it's been around for some time. While the drop mentioned in relation to this is quite coincidental (based on the information that has been provided) with the price change and the reminders about it spreading through the social and mainstream media in the last few months (as mentioned in the article).
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Are there that many zombie shows out there? Seems like there might be a couple or so.
As for recreation, seems like that's a fairly subjective type of thing that can be different for different people.
I hope they now consider going back to the old pricing now that they realize the impact. For those saying that an extra $2 a month doesn't matter - that is not the point, if Netflix saw that nobody minds the increase they would do it again in a year and people, again would say "an extra $2 is nothing". It would all add up and people like to stick to the pricing they initially joined the service with.
You guys beat me to it. This CEO just highlighted how stupid some people in high places are.
It seems to betaken from comments made by managements!
In any event the big problem here is a management team that doesn't understand their customer base. A few bucks a month is a big deal for a lot of people. This especially when there isn't much offered in return for the price increase. In fact it looks more like they took away making the up charge pretty huge to get back to where customers stood before the increase.
I'm not a Netflix customer by the way so I don't know the whole impact, but it seems to be much more than a couple of bucks a month. If you end up paying a $100 more a year that money can go into a lot more productive and lasting purchases. For example a trip to a hardware store can buy a lot of stuff for a persons favored hobby, in most places $100 covers a good dinner for two, the examples go on but the question remains what do you as a Netflix customer gain from this crap. Nothing really.
a tub of chocolate icecream that you can bring to your girlfriend's house to persuade her to share her netflix password
I got the message on my ATV about the increase the other night and accepted it. It seems like a small amount in the end, but now thinking about it, here is what we spend today --
Netflix = $9.99 (previously a rabbit ear and it was free for a few channels)
Internet = $70.00 for Comcrap (previously had to go to the library for free)
Phones = $150.00 for 4 phones on family share plan with 15gig data (previously $25 for a land line shared by all)
Cable = $75.00 for Comcrap (I actually don't pay this anymore, cause it was just too much for the lousy service and offerings)
Music = $9.99 for a streaming service (Previously free to listen to the radio)
Cloud storage = $9.99 for 1TB (previously free to store papers in a box)
The bottom line is that technology is great and gives us more flexibility, but the above shows it does come at a price - and the price does go up with time.
Netflix = $9.99 (previously a rabbit ear and it was free for a few channels)
Internet = $70.00 for Comcrap (previously had to go to the library for free)
Phones = $150.00 for 4 phones on family share plan with 15gig data (previously $25 for a land line shared by all)
Cable = $75.00 for Comcrap (I actually don't pay this anymore, cause it was just too much for the lousy service and offerings)
Music = $9.99 for a streaming service (Previously free to listen to the radio)
Cloud storage = $9.99 for 1TB (previously free to store papers in a box)
The bottom line is that technology is great and gives us more flexibility, but the above shows it does come at a price - and the price does go up with time.
Well, most of those "previously" options are still there for those that might want them (for whatever reason).
Actually lots of things can be done for that price. For example one can spend $10 bucks a month on a hobby like the Arduinos. $10 a month can fuel a hobby like woodworking. Hell $10 a month goes a long way to a gym membership. $10 buys a lot of used paperback books. $10 pays for travel to volunteer at the organization of your choice.
The point is expensive TV isn't mandatory for a good life. In fact for many it is a money drain and does little to enhance ones life. Unwarranted price increases like this just serve to enlighten people about the real value in services like Netflix.
You seem to be of the mind that there are no alternatives yet the world is full of alternatives some far more beneficial than parking ones self in front of the TV.
I'd argue it's because they blocked DNS users outside of the USA. It's annoying. I just canceled my subscription because of that. Content in Europe is ridiculous. It's ****ing stupid. I was willing to pay...but now I'm going to start downloading again. I know... Content makers probably forced Netflix to block DNS and VPN users. well now they aren't getting any money anymore.
I would be okay with the price increase if only they brought back the extensive catalog of popular shows & movies they removed from their service! So, once again it's yet another instance of a company charging you more for less. Thanks Netflix for rewarding your most loyal customers with the standard greedy business model.
Good point! They have more than just a few original programming shows these days but your point is still valid.
I'm not sure how it can be "unexpected" though. This is a basic principle for any paid monthly service, if you raise your rates, some people aren't going to like it and cancel. It's a given, a fact of life, so for Netflix to be dumfounded by it is stupidity and ignorance.
I guess they don't know their customer base like they think they do.
Paperback books aren'd mandatory for a good life, neither is woodworking or anything like that. There are certainly all kinds of things (or "alternatives"), but many aren't really better or worse, simply something different. Recreation, again, is something that is subjective, and is therefore (for the most part) is neither right or wrong or good or bad, just whatever works as recreation for the individual involved.
I considered ending my subscription, but since my partner and I split our outgoings between ourselves it doesn't look too much on an individual level. I'm not opposed to using torrents for content that hasn't been released in my region either. But any further price increases and I'll just use more torrents and Blurays. Reason why I originally went to Netflix was because Sky TV cost a fortune.
Now sum those up for an annual cost to you!! This is what people don't get, this is a massive cost when all of these services are talleyed up. Huge really. What is even worst is that these are services and produce no real product that the user owns. In the old days at least you owned your iTunes or MP3 player downloads and could play them as often as you wanted. The same thing goes for vinyl and DVDs.
Contrast this with streaming where you pay for every tune every time you listen to it. It isn't just the cost of the streaming service but also the cost of the data account. The reality is consumers are getting screwed over royally and unfortunately to many of those consumers buy right into this new way of doing business with entertainment. Oh and don't start thinking that all this money goes into making these business better, much of your money is going to profit for the companies involved.
Netflix should stop sending me E-mail saying I might have been hack and reset my password and when I do they send it again and shut my account again. Netflix ****ing moron it is your end that got hacked fix or get sued.
You missed the point entirely. People can and do reevaluate value, especially at the time of price increases. If the value isn't there they can find better things to do with their money. The fact that the management team expressed shock that this would happen is beyond explanation. People can and do shift what they value over time and as their interest change, market shifts like this just motivate people to jump ship.
Hell I went through this myself years ago. From the time I was a young teenager I spent a lot of money on photography. Eventually owning several medium format cameras. Currently I have a whole filing cabinet full of transparencies. How ever with the advent of digital I pretty much dropped the hobby completely. The realization was that the digital upgrade train was going to be a very expensive ride for what amounts to being a secondary hobby. In other words costs pushed me over the edge. The money for photography just got reallocated to other things that represented a better pay off.
I cancelled for that reason exactly. This witch-hunting of VPN services put me off Netflix in no time...
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I use Amazon Prime on a VPN. Netflix didn't need to enforce the VPN the way they did
You should all worry......in the UK satellite sports (Sky) cost $35 a month to watch a bunch of multi-millionaires who cant even beat Iceland! Eventually consumers will tally up what they spend, consider its entertainment value and vote with their feet.
The cost of all kinds of recreation is there, sometimes in actual sense of money, sometimes in sense of opportunity cost, sometimes in combination of both. Ultimately it's whatever works for the individual that matters as far as what they want and what they are willing to pay for it (again, wether in the form of money, time, effort, something else, or combination of those things).
I wasn't expecting it. They're still the cheapest and easiest. What are people switching to?
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