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?