Lack of similar services means most Netflix customers sticking around
- Tuesday, 26 July 2011 10:17
It has been two weeks since Netflix announced, much to the chagrin of its loyal user base, that it would be hiking its monthly subscription prices by 60 percent for users who want both streaming and discs. How have things been going for the company since then? If you were to ask some parts of the Internet, Netflix is about to crash and burn. But according to Netflix CEO Reed Hastings, there haven't been very many complaints.
Netflix announced earlier this month that it was splitting out its streaming and DVD plans and pricing them at $7.99 apiece per month—up from $9.99 per month for streaming and one DVD at a time. Assuming you want to keep both services (and not everyone does), that's $5.99 more per month for the same level of service, or $71.88 more per year. The company said it had decided to bump prices because there's still a large demand for DVDs, and splitting the services would make better financial sense for the company.
