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Netflix Could Lose 2.5 Million Subscribers Because Of Price Hike

| Filed under: Etc.Tech Talk

Netflix Losing Customers

We were blown away by the response the customers have been giving to Netflix for their greedy plan to split the combo package up and boost prices by a crazy 60%.

It's now looking like the service could be seeing 2.5 million customers canceling and going to a different service because of it. And if you take that number and multiply it by how much they paid per month and compare it to those who are going to downgrade to a less expensive deal VS. how many will pay the hike — it's a huge loss no matter how you slice it.

Per month. For a company that just reported quarterly loses and has been seeing their stock plunge because of the news.

We just can't believe they'd go through with this.

Also, they think that they'll lose a bunch of customers in the third quarter just to see a lot of them return in the fourth. That's pretty optimistic for a company who treats their customers like this.

Indeed, after Los Gatos, Calif.-based Netflix announced the price increase earlier this month, 70% of its dual streaming/disc rental subscribers — which represents the majority of its membership — cited their displeasure, according to a telephone poll conducted by Frisco, Texas-based research firm The Diffusion Group (TDG).

The study — based on a group of 500 Netflix subs — found that from 12% to 15% of streaming/disc subscribers would cancel service in the next six months. Netflix, in a July 25 letter to shareholders, postulated as much saying its expects “some subscribers” to cancel in the third quarter (which ends Sept. 30) before bouncing back in Q4.

Sure, competitors might not offer as much right now as Netflix, but they have two things going for them: they aren't screwing with their customers, and they see the chance to make the unhappy Netflixers happy again.

The more people who go to Amazon Prime, for example, the better the service and selection will become. Maybe this is just what they needed to become an actual competitor to the streaming service.

There's no shame in admitting you were wrong and apologizing to the 70% of customers you've upset, Netflix.

But then again, the same company that hasn't made any strides in accommodating the hearing impaired most likely won't do a thing about the unhappy customers they've brought upon themselves.

Are U going to cancel?

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37 comments to “Netflix Could Lose 2.5 Million Subscribers Because Of Price Hike”

  1. 1

    Check with the Motion Picture Association of America they lifted the rate on Netflix. Netflix just passed it to the consumer its still the best deal, great reporting numb nuts.

  2. 2

    Good! Glad to see that happen. They don't have many good movies on, everytime I try to search for a good movie they don't have it, what makes them think they can increase their price? If you want to do that at least put on more recent movies

  3. 3

    Shut the fuck up, netflix raises it's prices 6 bucks and everyone is all up in arms? You stupid self absorbed privileged little assholes, there are people in the united states starving and living on the streets and you're acting like it's some affront to your civi liberties that watching movies is going to cost you a few more bucks a month. It's real hard being a middle-upper class white American isn't it? FUCK YOU.

  4. 4

    I have quit them and so have my neighbor and boss.

  5. 5

    Already cancelled mine. With all the free ways to view movies/videos, I don't see the benefit right now. Netflix doesn't have a big enough streaming library to keep me around and I definitely have no use for the DVD service. I'll check back in a year to see what their streaming library is like.

  6. 6

    I have not gotten a dvd from netfix in a few years. It is all about online streaming and will be more so in the future for everyone. The price that netflix charges for the dvds is still great and the online streaming price is wonderful also.

  7. 7

    I use Blockbuster Online now. Unlimited free exchanges in store, games, bluray at no extra charge. Plus, they have that 28 day window over netflix and redbox on a lot of new releases. And they gave me a free month for switching from Netflix = )

  8. 8

    In terms of profit, it is actually a good business decision for Netflix and will not result in "a huge loss no matter how you slice it." If they are losing 2.5 million customers, that's $24.975 million per month that they will lose. However, for the other 20.5 million customers who are staying, and will be paying an extra $5.99, they will gain $122.795 million per month, for a net gain of $97.82 million per month. Even if some customers downgrade their service to the $7.99 package, they could stand to have 12.2 million of the remaining subscribers downgrade and only 8.3 million pay the $15.98, and they'd still be making the same profit that they are now (assuming all 23 million subscribers have the $9.99 plan). So, although it sucks, it is a good business decision, and I doubt they change their mind anytime soon–they have no reason to.

  9. 9

    Re: camillesunshine – yup ITS JUST THE WHITE PEOPLE COMPLAINING….you are a miserable dumbass. but there are more important things to bitch about than netflix.

  10. 10

    Camille take ur meds….In business news, Netflix stockholders are actually happy w/ the revenue they are seeing from streaming and there is and will be a streaming push in the next 6ths. Also the publicity from the 60% increase has caused a small bump(buzz people w/ wii other tech to find out about streaming) in streaming sales to counter act some of the cancelations. So this article is Shite. I wish it were true!

  11. 11

    As soon as I heard they were raising their prices, I too canceled my membership. So lame.

  12. 12

    Really? People are still complaining about the $6 increase a month for Netflix? I'm paying extra and could give a shit. Not because I'm made of money… but because I love Netflix and I would prob pay $20+ a month to keep their service. I'm very happy with them. And as someone who has tried both Huluplus, Amazon Prime, and Redbox… I can tell they don't compare at all. Go ahead and try a free trial… you will see that they're not a substitution.

  13. 13

    Re: camillesunshine – When did this become a thing about white people? That's kind of a weird assumption…

  14. 14

    i really don't see what is so horrible about raising the prices a little. they are getting more movies/shows, so i don't see what the big deal is. try buying everything that you watch on netflix, and see how much that costs you.

  15. 15

    What some people fail to understand is that this is a HUGE price increase. Times are hard. The last thing you want is some Billion dollar company increasing prices for no reason at all. If they want me to stream, then they need to update their streaming catalog because it sucks. I will be canceling my membership and going somewhere else.

  16. 16

    Re: brendon.breezy – A 60% increase and they are not offering anything w/ the increase except a FU pay it or don't. But you Are right I would Looooove that if it were the way things were, at my job tomorrow I say "hey, Pay me 60% more, I am doing NO MORE work and I will work most of the time but when you least expect it I will stop working and you'll just have to suck it up. Oh and Fu if you don't wanna pay"…yeah it would b nice you r right. But I guess u like to take it in the booty more than I do. Netgear and Manda…

  17. 17

    Oh boo hoo…people have no problem paying $6 for a cup of coffee at starbucks, but when netflix raises its prices people are all up in arms? $15 a month for UNLIMITED movies and tv shows is still an incredible deal if you actually are using the service. People need to calm the f*ck down.

  18. 18

    This increase is ridiculous. Netflix is (was) good, but too expensive now. A good alternative is the service from the TVDevo website that runs well and consumes less bandwidth. They show TV and Movies. I found out about it on the CNN site a while ago and have been using it since.

  19. 19

    Sorry folks, but they still have the biggest selection around. So quit bitchin'.

  20. 20

    netflix has poor selection, its takes 2-3 days to get your dvds, and now the price just blows. I am cancelling as soon as it goes into effect, makes me little sad but i've pretty much ran out of shows and movies to watch on the site.

  21. 21

    Re: camillesunshine – you're a a little bitch, if they are going to raise the price they better make netflix better, when in fact it keeps getting worse. We just want to get what we are paying for bitch. Guess what I lived on the streets in fucking Russia, had to go through garbage to get fucking food and the money I spend on netflix is money i earned and worked hard for, so yes it is our every civil fucking right to complain when service doesn't improve but costs go up so some fucking rich person can get more rich, so FUCK YOU and get a fucking education instead of uttering another stupid fucking comment.

  22. 22

    Re: Manda756 – Did you start recently? I can promise in next 5-6 months you'll run out of watching movies/tv shows and you'll be bored; that's what happened to me and my bf, we loved the service and would have paid more for it, but it's not worth it after 6-9 months, and the "new movies" they post up are old as shit and stupid, and box office movies they put up are not the best. DVDs take 2-3 days to get to and from you. It's just not worth it anymore, only if you're going to use for 8 or so months

  23. 23

    Re: smilesalot – 60% increase = $6. I drop twice as much as that at Starbucks everyday. It really doesn't make a difference to me

  24. 24

    This is a HUGE price increase, it's almost DOUBLE what I was paying before. So I can't believe that some people are all "so what? omg so what I'll pay". I'm a college student with 2 jobs and daddy doesn't pay my tuition, so this was my best bet because I can't afford cable.

    I'm cancelling. Thank you Perez for realizing this is ridiculous, even though by all means, you can afford it more than these creeps that are totally okay with paying %60 more per month. WTF flix is right. I've been with them for 2 years and they just f-ed it all up.

  25. 25

    Re: Manda756 – So tomorrow Starbucks asks for 10 bucks for the same cup o joe and a FU……No big deal? I'm sure you will say it isn't….Netflix MOLE

  26. 26

    I cancelled my subscription the same day I received the email notifying me of the price hike!

  27. 27

    I have been a loyal netflix customer since the beginning when they started and have gone through many increases and decreases with Netflix. I did leave once and try alternate services such as Blockbuster however the quality of service could not compare. Netflix needs to act like the phone companies and introduce price changes to new and recent customers and leave loyal older customers alone. However what I do know is that once they do not see an increase in 4th qaurter to recover from the losts within third quarter they will drop their prices. So be hopeful; I understand the anger but not too long ago customers on the 3 at a time plan was paying almost $30 monthly for their subscription.

  28. 28

    Good grief! They have been SO cheap that I wondered how they could offer SO much for SO little. How greedy ARE we that we don't want to pay a few bucks more? I was able to cancel my truly greedy cable provider COMCAST AKA XFINITY and save over $100/mo and never had a lack of things to watch. Yes, I reduced my plan to instantly only, because I never used the DVD feature, there was always something to watch without it. Grow up people, or go pay $200 for cable!

  29. 29

    Re: bellaa – ya well, good luck with THAT! If you think Netflix' offerings suck, wait till you look elsewhere!

  30. 30

    Re: StazzyBoo – I've been with Netflix for 6 years. No boredom yet. In fact, their selection gets better and better. Honestly, name 5 movies you wanted to watch that they didn't have?

  31. 31

    The price hike didn't bother me as much as the email. They were like, "We're raising our prices, if you don't like it cancel your subscription." It could have been put a little more gracefully. lol

  32. 32

    Re: schmoe – Everytime a movie is on Tv and I think I will watch it on netflix no cuts no comercials….got to netflix and it says available on disk and we are talking 10 yr old movies. The one was…some Halle Berry movie, lame but yes, netflix never has it.

  33. 33

    Re: smilesalot – I would be pissed if Starbucks raised their prices, but the difference here is Netflix was so cheap that they were running competitors out of business. On the other hand, Starbucks is actually more expensive than their competitors. By raising their prices, other businesses can thrive. It's illegal to have a monopoly buddy, and that's what they were essentially doing.

  34. Alsi says – reply to this


    The email you recieved was as upsetting as the that price hike. It wasn't even a gradual hike. Out of nowhere BAM your fee goes up 60%. And its for the same service! Nothing new \was added. In my case fortunately, i'm saving money. All the movies i want to see are only available on disk. A couple I can watch online but 90% are disk only. so i'm downgrading.

  35. 35

    Tried Netflix and didn't care for it so it doesn't bother me. Seems like every time I tried ordering a movie they didn't have it in stock. People have the power to speak with their pocketbook. If you don't like then cancel your service and don't waste your money. This is only the beginning of the price hike cause I see a whole lot more in the future if you idiots keep paying them.

  36. 36

    Re: camillesunshine
    Hey Camillesunshine,
    HOW ABOUT FIXING YOUR ANGER ISSUES BEFORE YOU GO POSTAL! Man, you must be a very miserable person. Good luck to you.

  37. 37

    Re: supersoup
    "$15 a month for UNLIMITED movies"
    did you ever stop to think what this would do to the waiting times? THEY WILL BE LONGER.