Netflix Raises Price

[thegreekdog]

The Wii doesn't have an available wired connection? I thought it did for some reason (not that I have a Wii... can't afford it).

It has built in wireless; you have to buy a special port to hook up a wired connection.

You could also use Netflix on the Xbox 360 if you have that.

I already do use Netflix on the Xbox 360 (I have wireless internet). I was responding to Player.

[Night Strike]

The Wii doesn't have an available wired connection? I thought it did for some reason (not that I have a Wii... can't afford it).

It has built in wireless; you have to buy a special port to hook up a wired connection.

You could also use Netflix on the Xbox 360 if you have that.

I already do use Netflix on the Xbox 360 (I have wireless internet). I was responding to Player.

Oops, I guess that answer was unclear. My first line was replying to you (TGD), the second line was replying specifically to player as well as using the general "you".

[Woodruff]

I now realize I have probably never seen MacGyver.

PLAYER, I cannot stress this enough...you would LOVE MacGyver. You could probably find an
episode or two on the web somewhere. But seriously...the character MacGyver very much
fits into my perception of you.

And as a bonus, it's just a pretty good darn show anyway.

[Army of GOD]

=(

Changed my plan to only instant today. I don't really understand why they'd raise it so much in a short period of time, but whatever.

[BigBallinStalin]

=(

Changed my plan to only instant today. I don't really understand why they'd raise it so much in a short period of time, but whatever.

Because the demand was perceived to be high enough for the additional price charged?

[PLAYER57832]

Netflix on the Wii will only work with an internet connection. The only advantage is that you get to watch on your TV.

OK, thanks. We don't have wi-fi here, so I guess I will just have to wait.

The Wii doesn't have an available wired connection? I thought it did for some reason (not that I have a Wii... can't afford it).

I can have Wifi, if the wifi is in your location. It is not here. We have Wii because Grandma got it for the kids. We have a big screen TV because my husband helped some folks out. Doesn't always take money to get stuff.

WE do not, unfortunately have xbox.

[Army of GOD]

Dear Richard,

I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

It’s hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.

There are no pricing changes (we’re done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.

Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.

Respectfully yours,

-Reed Hastings, Co-Founder and CEO, Netflix

p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.

I feel like this is a break-up letter.

[BigBallinStalin]

Dear Richard,

I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

It’s hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.

There are no pricing changes (we’re done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.

Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.

Respectfully yours,

-Reed Hastings, Co-Founder and CEO, Netflix

p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.

I feel like this is a break-up letter.

That's because we, at Netflix, love customers like you, Army of God.

By splitting the two businesses, we can better understand your needs so that we can better adjust our strategies to provide you with better service.


We love you, and if you would bend over a little bit more, we can show you how much we love you.


-Your pals at Netflix


(Srsly though, this makes sense):

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

[Army of GOD]

I could (maybe) understand how that may require them to be split, but to raise the price of both too (not just raising the price, but doubling the old, combined one)?

[BigBallinStalin]

I could (maybe) understand how that may require them to be split,....

Because the price reflects the resources required for each service, and most importantly it shows how a change in A will result in a change in the profits (which are determined by the price).

For example, if they enact plan B for Streaming Services, the profit will be affected, but if profits decrease after plan B, how can you tell if the profit decrease was from the DVD service or from the streaming service?

In other words, if you aggregate the two business models under one price system, it becomes difficult to differentiate between the effects from each businesses' plans (i.e. plans for streaming and plans for DVD mail)

_______________________________________

...but to raise the price of both too (not just raising the price, but doubling the old, combined one)?

As for raising the price, why not? They expect to price out an acceptable amount of customers in order to increase total revenue. This revenue could go straight to profits, or maybe they're planning on expanding the services, but in order to do so, they need more money.

It just depends, and they're not going to tell you exactly why because then their competitors will know.

[TA1LGUNN3R]

I hate how the letter is so goddamn personal. "I messed up. I owe you an explanation." or "I offer my sincere apology." I would just like straight talk, e.g. "we're raising our prices; pay up or you're out, bitch."

-TG

[Army of GOD]

I hate how the letter is so goddamn personal. "I messed up. I owe you an explanation." or "I offer my sincere apology." I would just like straight talk, e.g. "we're raising our prices; pay up or you're out, bitch."

-TG

http://www.youtube.com/watch?v=BeP6CpUnfc0

[oVo]

I don't really understand why they'd raise it so much...

Their original fees were cheap by design to kill Blockbuster and other competitors.
NF market research figured the new price was still a good deal and that customers
now used to their service wouldn't mind the increase.

The Netflix apology is a hoot... Sorry we fucked up, but we'd still like your money.

[Doc_Brown]

http://theoatmeal.com/comics/netflix

[Army of GOD]

http://theoatmeal.com/comics/netflix

I lol'd

[IcePack]

http://theoatmeal.com/comics/netflix

I lol'd

x2

[whitestazn88]

http://theoatmeal.com/comics/netflix

I lol'd

x2

+1

[Timminz]

Could someone post the image here please.

[TA1LGUNN3R]

show: for timtumtimteroo

-TG

[Timminz]

show: for timtumtimteroo

-TG

How do I make my Firefox show .png files? It doesn't seem to like them.

[Army of GOD]

show: for timtumtimteroo

-TG

How do I make my Firefox show .png files? It doesn't seem to like them.

Here, I'll post it in .jpg:

show

[Timminz]

show: for timtumtimteroo

-TG

How do I make my Firefox show .png files? It doesn't seem to like them.

Here, I'll post it in .jpg:

show

Haha.

I found a way to make firefox cope. gimme a sec to read the fucking comic, already.

[Timminz]

Haha. I still pay the same, get the same service, and the number of titles is increasing faster than I can watch the shit I want to watch.


Canada wins again!

[pancakemix]

Meh. It'd be funny if it was actually an accurate metaphor.

I honestly think the Quikster move is pretty smart. They're similar but different services. I don't like their price changes, but it's necessary considering this was probably their plan all along. Two massive changes at once would've caused massive backlash, and probably more lost customers than they had to begin with.

[Army of GOD]

I stayed with Netflix through the price raise.

I stayed with Netflix through the steaming/renting split.

I stayed with Netflix through the loss of Spartacus.

I'm officially done with Netflix now that South Park is gone. What a shit service.