Don’t Get Greedy!
Alas, poor Netflix, you served me well…But your split plans? Um…no…
My family and I have thoroughly enjoyed hours of unlimited streaming (I think that’s the only thing that has kept Bug from being bored out of her mind here at the office while we schlep kids belts) and the DVD’s have been great, but I have to say that a 60% price increase seems a bit excessive. I’m not sure what school of business you attended that said such a drastic increase all at one time is a smart one.
It seems as though the rapid (seemingly overnight) popularity of Netflix all but hastened the demise of Blockbuster, Movie Gallery (in case you don’t remember those, click here) and the like. I mean, really, we saw those stores going by the wayside eventually thanks to cable companies offering “On Demand” programming and more and more Redbox vending machines popping up all over the place and the endless places that you can stream movies online, but I’m pretty sure that Netflix was the straw that broke the camels back.
While all of these new options are convenient, there is something to be said about walking into a video store, picking up a VHS tape (yes, that dates me, I know) reading the description on the back of the box and moving on to the next. Call me nostalgic, but it was exciting to see the “New Releases” and all of the fancy cover art. Ok, so I’m a geek, but I’m ok with that.
Then, there were all of those glorious late fees. By the time we actually returned the movie and paid the late fees, we probably could have just bought the movie, but all those tapes just took up too much room.
Back to Netflix, I think it was a major mistake to raise your prices so drastically and no matter how much I love you, it’s now the principle of it… I will not pay a 60% price increase, for no additional return. I guess our life will consist on trips to the nearest Redbox vending machines. Maybe we will now just have to check out Epix for our online streaming. It’s free for the time being, anyway. And if we stick with you? Well, I will be saving $2/month by only getting streaming. Thanks for saving me money.
The lesson: Don’t mess with a good thing by getting greedy. It’s bad for business.