The Netflix price hike kicked in this month and I'd decided to keep both plans. When Netflix announced the price increase I was right there with everyone else voicing outrage on social networks. Because I was a customer long before the streaming option became available, I felt like Netflix had it wrong in the way they were framing the issue. I wasn't on an streaming plan with an occasional DVD rental, I was on a DVD plan with occasional streaming. I was also put off by the manner in which they announced it, seemingly without regard to their most loyal and long-standing customers. Price increase, fine, but grandfather in the existing user base, show your loyal customers that you appreciate their business.
After calming down a bit I re-thought my position and now I'm not at all worried by this price increase. What changed my mind? I remembered why I joined Netflix in the first place. I previously rented movies from Blockbuster and would usually rent one or two movies a weekend at $4.25 per rental. So, conservatively, let's say I rented only one movie each weekend this month and turned them all in on time (avoiding late fees), I would have paid $17. And if I rented more than one movie over a weekend or incurred late fees that total would have been much more. And keep in mind that renting movies at that time meant driving to the video store (and hoping they had the movie I wanted in stock) and back again, an expense and hassle that Netflix service avoids. So, given all of that, the Netlfix price increase is still a savings and my membership still has value to me. So, all was forgiven.
Now, this week, the Netflix CEO announced that he knows he made a mistake with the two price plans and he was prepared to fix it - by splitting the two services into different businesses. Okaaay. Now I have to decide not only if I want to keep two services but if I want to keep two separate accounts, two ques, and two bills. Come on Netflix, ever heard of bundling? All the cool service providers are doing it.
I like renting DVDs and I still consider streaming a hit-or-miss option, as they are likely to not have what I'm looking for available on streaming. Just this last weekend, for example, I rented Source Code on DVD and it's not available yet on the streaming service. And I still buy the occasional DVD if it's something I want in my collection. Even if my DVD player died tomorrow I'd probably replace it. I think they are underestimating the staying power of the DVD.
Of course, their long-term strategy is sound, eventually the DVD will go the way of the VCR, but I'm sure I'm not the only one wondering if Netflix will still be around when that day arrives.
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