Netflix Faces 'Unexpected' Loss of Subscribers Due to Monthly Price Increase

[4jasontv]

I didn't say it wasn't a price increase. Just that the increase happened a while ago and existing users were simply given a discount for some time after that basically for their loyalty and that discount is ending now.

Ok, but it wasn't raised awhile ago. The raise is occurring now. No one cares if they claim they are going to do something. They could announce they are bringing back all of Stargate, but until they do it it isn't anything.

Also, they weren't "given a discount" they were simply paying the price that grandfathered customers got. I doubt grandfathered customers care how you get to the final price as long as they pay less than non-grandfathered customers. Which is kinda the point of being grandfathered. They should always pay less than customers that signed up after them. It seems to a good degree that my point is correct as it has translated into people jumping ship. It isn't a matter of if the new prices are valid. It's a question of if their loyalty is continuing to be recognized. Otherwise they have a capitalistic duty to repay them with an equal lack of loyalty and bad word of mouth.
[doublepost=1468977377][/doublepost]

OK, but consumers don't care whose fault it is. They just want content for money.

Exactly. Netflix is a delivery company first and foremost.

 

[C DM]

Ok, but it wasn't raised awhile ago. The raise is occurring now. No one cares if they claim they are going to do something. They could announce they are bringing back all of Stargate, but until they do it it isn't anything.

Also, they weren't "given a discount" they were simply paying the price that grandfathered customers got. I doubt grandfathered customers care how you get to the final price as long as they pay less than non-grandfathered customers. Which is kinda the point of being grandfathered. They should always pay less than customers that signed up after them. It seems to a good degree that my point is correct as it has translated into people jumping ship. It isn't a matter of if the new prices are valid. It's a question of if their loyalty is continuing to be recognized. Otherwise they have a capitalistic duty to repay them with an equal lack of loyalty and bad word of mouth.
[doublepost=1468977377][/doublepost]

Exactly. Netflix is a delivery company first and foremost.

The cost of the service went up some time ago. Customers who already had the service were allowed to stay and pay a lower cost for some time. That time is up now and those customers would now be charged the regular price of the service (which has been in place for some time now).

 

[Ray Brady]

As is always the case with Netflix, it's not the price that bugs me, but the bizarre choices they've made in the implementation. For example, I'm now on the 4 screen/Ultra HD plan, which is what I want. I don't care about the price change; I just want to keep my current plan.

If I go to my account settings, I am advised that in August, my plan will change to 2 screens, with Standard HD. All I want to do is keep my current plan going, but apparently Netflix doesn't consider that a viable option. Instead, when I go to Change Plan, I'm told "You can't change your plan until the next billing date."

So instead of taking care of my account now, I have to wait until August to tell them not to change my service. It's not a big problem, but it's typical of Netflix's administrative annoyances, like when they removed the ability to search both the DVD and Streaming libraries simultaneously. As time goes on, the system just seems to require more clicks to get to where you want to be.

 

[C DM]

As is always the case with Netflix, it's not the price that bugs me, but the bizarre choices they've made in the implementation. For example, I'm now on the 4 screen/Ultra HD plan, which is what I want. I don't care about the price change; I just want to keep my current plan.

If I go to my account settings, I am advised that in August, my plan will change to 2 screens, with Standard HD. All I want to do is keep my current plan going, but apparently Netflix doesn't consider that a viable option. Instead, when I go to Change Plan, I'm told "You can't change your plan until the next billing date."

So instead of taking care of my account now, I have to wait until August to tell them not to change my service. It's not a big problem, but it's typical of Netflix's administrative annoyances, like when they removed the ability to search both the DVD and Streaming libraries simultaneously. As time goes on, the system just seems to require more clicks to get to where you want to be.

Have you tried contacting them about it?

 

[4jasontv]

The cost of the service went up some time ago. Customers who already had he service were allowed to stay and keep on paying a lower cost for some time. That time is up now and those customers would now be charged the regular price of the service that has been in place for some time now.

Right. So the price went up now, not before. I am glad we agree on this point. The fact that the price increased on paper and was offset by a discount on paper is an unnecessary detail. Paid less before, now pay more.

They advertise how they constantly provide new content for a flat monthly rate. Their product is therefore providing new content at a flat monthly rate. If the rate changes, or they fail to provide more content then they failed to deliver and should expect to lose business and credibility in the market.

 

[Ray Brady]

Have you tried contacting them about it?

That would be more bother than simply waiting for August. Still, you're right in that leaving them feedback might be worthwhile.

 

[C DM]

Right. So the price went up now, not before. I am glad we agree on this point. The fact that the price increased on paper and was offset by a discount on paper is an unnecessary detail. Paid less before, now pay more.

They advertise how they constantly provide new content for a flat monthly rate. Their product is therefore providing new content at a flat monthly rate. If the rate changes, or they fail to provide more content then they failed to deliver and should expect to lose business and credibility in the market.

The affected users would be paying a higher price now compared to what they were paying before, but Netflix didn't just have a price increase, their prices are the same as they have been for a while since the prices for their services were increased some time ago.

 

[4jasontv]

The affected users would be paying a higher price now compared to what they were paying before, but Netflix didn't just have a price increase, their prices are the same as they have been for a while since the prices for their services were increased some time ago.

Are you trying to say that customers prices didn't go up because customers prices were always up customers just weren't paying it? That doesn't make sense. The final cost is all that matters. Prices + discounts + taxes = only number that matters. Their price isn't the same. I thought that was pretty clear. It's the entire point of the article. The price went up for the customers who shouldn't see price increases. Stop saying the prices didn't increase because they already increased the price. It's illogical.

Edit: clarified "they".

 

[C DM]

Are you trying to say that customers prices didn't go up because customers prices were always up customers just weren't paying it? That doesn't make sense. The final cost is all that matters. Prices + discounts + taxes = only number that matters. Their price isn't the same. I thought that was pretty clear. It's the entire point of the article. The price went up for the customers who shouldn't see price increases. Stop saying the prices didn't increase because they already increased the price. It's illogical.

Edit: clarified "they".

I didn't say the prices didn't increase, and in fact said the opposite of that, and reiterated that part as well. Not sure why there are continued attempts to twist something pretty clear cut as that. I've been simply pointing out that Neftlix prices have changed some time ago, and not that Netflix is increasing prices now.

 

[4jasontv]

I didn't say the prices didn't increase, and in fact said the opposite of that, and reiterated that part as well. Not sure why there are continued attempts to twist something pretty clear cut as that. I've been simply pointing out that Neftlix prices have changed some time ago, and not that Netflix is increasing prices now.

`
What is so clear to you? There is nothing twisted. Are customers paying more now than they did? That is the only thing that matters. They can announce that prices will go up, but until they raise the prices then the price didn't increase. The time between when the price change was announced and when it went into effect doesn't count towards how long the price has been higher. It doesn't buy them good will, and they don't earn Netflix any justification to to defend their brand.

 

[C DM]

`
What is so clear to you? There is nothing twisted. Are customers paying more now than they did? That is the only thing that matters. They can announce that prices will go up, but until they raise the prices then the price didn't increase. The time between when the price change was announced and when it went into effect doesn't count towards how long the price has been higher. It doesn't buy them good will, and they don't earn Netflix any justification to to defend their brand.

Well, I mentioned that prices went up, and reiterated that in reply to that being missed/ignored, and yet it came back up as somehow I was saying that the prices didn't go up. Certainly seems like things were being twisted. Again, the prices went up some time ago, just that existing customers didn't have to pay those higher prices for a while until now.

 

[tbobmccoy]

they'll all come back. What else are you going to get for $9.99 a month that even comes close to Netflix?

Amazon Prime, Hulu Plus, to name a couple that are cheaper with expansive libraries and exclusive shows. Netflix overreached on this price increase, especially since it's affecting long term users the most. I'm tempted to cancel before my sub is up.

 

[QCassidy352]

Netflix has long been the best $8 I spend each month, and it will now be the best $10. Netflix is far more valuable to me than cable at a fraction the cost.

 

[4jasontv]

Well, I mentioned that prices went up, and reiterated that in reply to that being missed/ignored, and yet it came back up as somehow I was saying that the prices didn't go up. Certainly seems like things were being twisted. Again, the prices went up some time ago, just that existing customers didn't have to pay those higher prices for a while until now.

I get your confusion now. I got that you are saying that prices went up, and I thought I recognized that earlier. You seem to be thinking this occurred some time ago when in fact the price change has just occurred. Do you see how announcing a price change and actually charging customers a different final price are not the same thing?

 

[Luscious]

I'm fine with $9.99 a month for Netflix given some of the original programming that I really love. If it goes up again, however, I'm out! I might sign up for a month to binge watch House of Cards and a couple of other original series that I like but I won't pay more than $9.99 a month on an ongoing basis for a subscription.

 

[iceman42]

i enjoy hulu plus more than i did when i was with netflix.ppl are to cheap

 

[C DM]

I get your confusion now. I got that you are saying that prices went up, and I thought I recognized that earlier. You seem to be thinking this occurred some time ago when in fact the price change has just occurred. Do you see how announcing a price change and actually charging customers a different final price are not the same thing?

Seems like the confusion lies elsewhere. The prices for Netflix services went up some time ago, some people were simply allowed to pay older lower prices for a while and now would need to pay the regular current price that has been in place for some time.

It's fairly simple, but let's try to simplify it with an example: if it has been raining since morning and someone has been inside all day and then comes out into the rain in the evening, to them the rain just started (as they weren't in the rain before and are now), but it would be incorrect to say that it just started raining given that it has already been raining all day long.

Thus, similarly, someone who would be now paying a higher price for Netflix would be paying more, but it's not because Netflix just had a price increase for their services, (it's because the current prices are higher and some people simply didn't need to pay them until now).

 

[jimbobb24]

I don't know what the complaints are about - at $10 the value is still ridiculously amazing. I would pay far more. Worth it for DareDevil alone.

 

[4jasontv]

Seems like the confusion lies elsewhere. The prices for Netflix services went up some time ago, some people were simply allowed to pay older lower prices for a while and now would need to pay the regular current price that has been in place for some time.

It doesn't matter what they were told. If they said the price was changing from $8 to $20 a month, but then decided to let them keep it at $10, they aren't saving $10. They are still being charged $2 more.

Netflix's word means nothing, good or bad, because they have broken their promises so many times. Until they actually charged the customers credit card more the price hadn't changed. Even if they said it had. It doesn't matter what they said, or what they called it. All that matters is the price the customer ultimately paid.

It's fairly simple, but let's try to simplify it with an example: if it has been raining since morning and someone has been inside all day and then comes out into the rain in the evening, to them the rain just started (as they weren't in the rain before and are now), but it would be incorrect to say that it just started raining given that it has already been raining all day long.

The reason this is bad example is because the only thing that is relevant is how wet they are. To the person inside they just started getting wet. With Netflix all that matters is how much the customer paid. The person inside got wet after other people, doesn't change when that indoor person got wet. It doesn't matter what everyone else is paying. What matters is what the grandfathered customer is paying.

Thus, similarly, someone who would be now paying a higher price for Netflix would be paying more, but it's not because Netflix just had a price increase for their services, (it's because the current prices are higher and some people simply didn't need to pay them until now).

It is a current price increase. Saying prices went up but not increasing the prices doesn't make the price higher. The service is still only worth what the customer is willing to pay. The proof in this is that customers leave if the price isn't worth it. Which they did. If the price had always been higher then they wouldn't have left due to cost.
[doublepost=1468984917][/doublepost]

I don't know what the complaints are about - at $10 the value is still ridiculously amazing. I would pay far more. Worth it for DareDevil alone.

The issue is that not everyone watches Daredevil. So if you love the show, and I don't, you are still dependent on me providing some revenue to keep Daredevil being made. Even if I don't watch it. Likewise there may be a show I like on Netflix I like and part of your subscription pays for that show. What keeps the content so fresh and of such high quality is that the user base is large enough that our cumulative fees pay for most of our favorites. When some users are treated poorly, such as grandfathered users have a price increase, all of our favorite shows are at risk. If enough customers leave the service than less shows can be supported. If my show is then cut and I decide to leave as a result then you have even less revenue for Daredevil. You may find that even though you are willing to pay more for the content you like the loss of customers who paid less than you has more influence over all.

That's the issue. The longer a customer is a member or subscriber the less likely they are to leave. That's why grandfathered customers are so important. And why $2 more a month is such a big deal. The loss of $8 hurts us more than the gain of $2 helps.

 

[pokerplayer73]

How much tax is charged on your monthly subscription? I get charged 10% even though it is 7% tax in our county. 7.99 + 0.80 = $8.79. Never understood why 10%

 

[C DM]

It doesn't matter what they were told. If they said the price was changing from $8 to $20 a month, but then decided to let them keep it at $10, they aren't saving $10. They are still being charged $2 more.

Netflix's word means nothing, good or bad, because they have broken their promises so many times. Until they actually charged the customers credit card more the price hadn't changed. Even if they said it had. It doesn't matter what they said, or what they called it. All that matters is the price the customer ultimately paid.



The reason this is bad example is because the only thing that is relevant is how wet they are. To the person inside they just started getting wet. With Netflix all that matters is how much the customer paid. The person inside got wet after other people, doesn't change when that indoor person got wet. It doesn't matter what everyone else is paying. What matters is what the grandfathered customer is paying.



It is a current price increase. Saying prices went up but not increasing the prices doesn't make the price higher. The service is still only worth what the customer is willing to pay. The proof in this is that customers leave if the price isn't worth it. Which they did. If the price had always been higher then they wouldn't have left due to cost.
[doublepost=1468984917][/doublepost]

The issue is that not everyone watches Daredevil. So if you love the show, and I don't, you are still dependent on me providing some revenue to keep Daredevil being made. Even if I don't watch it. Likewise there may be a show I like on Netflix I like and part of your subscription pays for that show. What keeps the content so fresh and of such high quality is that the user base is large enough that our cumulative fees pay for most of our favorites. When some users are treated poorly, such as grandfathered users have a price increase, all of our favorite shows are at risk. If enough customers leave the service than less shows can be supported. If my show is then cut and I decide to leave as a result then you have even less revenue for Daredevil. You may find that even though you are willing to pay more for the content you like the loss of customers who paid less than you has more influence over all.

That's the issue. The longer a customer is a member or subscriber the less likely they are to leave. That's why grandfathered customers are so important. And why $2 more a month is such a big deal. The loss of $8 hurts us more than the gain of $2 helps.

Lots of discussion about all kinds of things and yet nothing about what I was actually talking about in my original reply to someone else's post. Even in relation to the example I made the response was about another aspect of it which wasn't what I was taking about. (Not to mention that no promises were broken in relation to this, it's as it ways described.)

 

[vooke]

Don't I just love the hindsight geniuses!

I honestly doubt is US is that price sensitive to cancel subscriptions over $2. Netflix woes clearly stem from elsewhere. They need to listen to customer complaints more

 

[jdogg836]

I realized when I got the price increase reminder email that I only watch the "Netflix Original" programming along with a few extra shows here and there. Nowhere near what I used to watch. I used to constantly add movies to my queue and watch them. I'm probably going to be part of the churn myself. I'll activate it when the new seasons of OiTNB, House of Cards, and Daredevil air, but then shut it off during other months.

 

[Sevendaymelee]

I unsubscribed not because of the increase but because I got tired of spending money on media that is old. The movies are old. The TV shows are old and their "original" content isn't something I care about. I have television for TV shows which I can watch live, as they air and I have a multitude of digital movie rental options at hand should I want to watch a movie. Netflix just doesn't make sense anymore to me.

 

[FreddySchneider]

Don’t know about you guys, but I am still able to change my Netflix region to USA thanks to this guide https://goo.gl/5FJnF3