Will Netflix Cave?

Netflix enduring customer outcry on Facebook

After Netflix announced it’s new pricing scheme, people have taken to social media in droves to voice their concerns over the $7.99 price points for streaming AND unlimited DVD service, $15.98 for both. Ummm, anyone who deals with pricing knows, it’s risky to do a “two-fer” without giving a break. Why not make it $13.99 or even $14.98?

Dear Netflix” is trending on Twitter (WORLDWIDE). And at around 11 am CDT, they had 33,373 comments on Facebook. Oh, my.

The Netflix blog addresses the pricing in a way that I think seems disconnected: “Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs.”

Will Netflix stick to their business strategy or cave in to the pressure? My guess is that they will have no choice but to make some kind of adjustment. Having weathered some PR storms myself, it’s hard to pinpoint current customer voices in all the din. Many of the complainers may not be former, current or future Netflix customers. Hang in Netflix!

Time will tell. What do you think? Stay tuned and I’ll keep this post updated!

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