Netflix continues to take a pummeling from subscribers who are so enraged by the company's unilateral decision to separate its DVD and streaming plans − and increase prices as a result − that they're threatening not only to cancel the service, but also showing up by the tens of thousands to blast it on Facebook.
Yesterday, we reported on the initial reaction to the changes, and by last night we'd seen more than 9,000 comments on the Netflix Facebook page, which has 1.5 million fans. (There are 23.6 million Netflix members in the U.S. and Canada.) By this morning, nearly 30,000 had registered the summer of their discontent with the rental service that used to ride high on the loyalty of customers who loved not having to pay late fees and receiving their discs in their mailbox. The red envelope was something of a little treat at the end of a long day.
But now, customers are seeing a different kind of red.
For many, Netflix's streaming selection, while growing and improving since it became a perk about four years ago, still can't get anywhere near its vast volume of DVDs. And because of that, folks supplemented their streaming plans with at least the one DVD out at any given time option, for about $10.
But with the announcement that the same service would cost almost $16 — about 60 percent more than what they're paying now — people snapped. In these tough economic times, this little bit of entertainment counted for a lot. And now, subscribers are demanding to be heard. We want to hear from you, too. Take our poll and let us know if you're going to follow through with threats to leave Netflix, or if you've decided against it.
We're wondering if people have followed through on cancelling, if Netflix will increase its instant selection to make up for those who will cut DVDs from their plans and if Netflix will cave to the torrent of negative reaction and restore its merged plans. We also want to know if Netflix deleted comments from its Facebook page, as some have indicated on the site. Some complained that they didn't even get the courtesy of an email and only found out through sites like ours, or on their Facebook.
We asked these questions and more, but we still haven't heard back from Netflix. We tried again this morning to contact them. We'll update when and if we hear from them.
UPDATE: Steve Swasey, vice president of corporate communications for Netflix, got back to us this afternoon and responded to our questions.
He said the timing of the price change was "appropriate" and that "$6 more is a remarkable value, a latte or two every month. For most folks it’s absorbable," adding Netflix was "sympathetic to those in terrible financial straits."
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But, he said, the reaction was "expected." "We anticipated some folks were not going be happy with the change. It didn’t surprise us."
Swasey said, "30,000 or so is a sub set of 23 million subscribers. They're not speaking for the majority. But, their opinion is important and we value them."
(We hope Swasey has invested in a flak jacket.)
For Netflix, he said, the separation of the plans was a consumer-focused decision that "provides a simpler, easier Netflix experience. Some people don't want streaming, some only want DVDs." He also said Netflix would be devoting more resources to DVDs, while also adding that Netflix's future expansions, such as Latin America, would be streaming only.
Streaming titles numbered about 20,000 a year ago, he said, and while he wouldn't reveal how much they've added, he did say it was "more than you can watch in a lifetime."
No word on how many cancellations will come, or have come, out of this, but Swasey suggested the company would provide that information when it releases its next earnings report on July 25.
"We would like those members to stay with Netflix, but the reality is people will leave. We'll make it up over time and the service will continue to grow. I don't want to sugarcoat this. We do expect a certain amount of people to leave the service," Swasey said. Besides, "Netflix members already go to Redbox, order cable, go to theater and Amazon."
He said everyone should have received emails about the changes, so they are looking into what happened with that. As for customer service being down yesterday, he attributed that to the extremely high call volume that overwhelmed their 800 or so reps. And as to accusations of deleting Facebook or other online comments? He says that isn't happening.
Check out this video that reports on how subscribers took to social media to express their anger:
Originally Posted by: wpr