Thursday, July 14, 2011

Dear NetFlix: Thanks for the customers. Signed, RedBox

NetFlix announced on their (free) Google Blogger weblog their new pricing plans. Prior to their announcement they had over 23 million subscribers. I wonder: How many they will have by the end of September? Their new plan nearly doubles the monthly cost for the same service I've been getting (1 dvd at a time and unlimited streaming.) If I watched a LOT of NetFlix (or any other video) $15.98 for that service may seem like a great deal. The reality is that we have a life outside video and generally only watch about 1 DVD per month and perhaps 1 streamed movie (VERY LIMITED CATALOG on NetFlix) and 1 or 2 NetFlix TV streams--maybe six hours of content total. That is NOT worth $15.98 per month. At that rate, Dish Network would cost me up to $1,917.60 per month vs. the $44.00 that I pay them for unlimited viewing. If your landlord raised your rent 60% with no increase in benefit -- or if gas went overnight to $5.60 a gallon would you still see it as a good deal? Everything is worth what people are willing to pay for it. I'm not willing to pay NetFlix $2.66 per hour for their service. I didn't even wait until the end of August (new pricing applies 1 September). I cancelled immediately. I can get what I want from HuLu or Apple TV.

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