David Pogue has also been thinking/fuming about the Netflix price change which effectively increases prices from $10 to $16 for streaming plus one-DVD-at-a-time. He ends with:
[W]hat makes me unhappiest is how calculated all of this feels. In July, a spokesman told me that Netflix had already taken the subscriber defection into account in its financial forecasts.
And sure enough. When I tweeted that Netflix had lost one million of its 25 million customers, @npe9 nailed it when he wrote:“It damages their brand and images, but 24 million customers paying $16 is still better than 25 million @ $10. Increases revenue by >50%.”
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September 22, 2011 at 3:49 pm
MostlyAPragmatist
David Pogue’s reaction sounds more emotional than reasoned. He’s asked to pay more and he doesn’t like it so he imagines dishonorable motives from Netflix. I like this guy’s analysis and it rings true.
http://abovethecrowd.com/2011/09/18/understanding-why-netflix-changed-pricing/
September 23, 2011 at 3:14 am
pabu01
And how it shld be other then calculated? They run a biz, they ought to calculate!