First, let me preface this by saying that my current plan is 3-DVD’s at a time, with free streaming movies, for $20/month. As of 9/1/2011 that price will increase 20% to $24/month.
I get that streaming subscribers cost Netflix less and they make more money. I couldn’t care less about the “It’s just a latte” comment. Here’s what I don’t like – they want a 20% increase with no additional offering. They’ve increased prices over the years, most recently just last year. This morning Netflix VP of Corporate Communications Steve Swasey was interviewed by Michael Krasney on my local NPR station, KQED.
When asked about this, Mr. Swasey said, “What we’re trying to convey is that this is an improvement in Netflix service.” (You can listen to the entire program here.) He then goes on to attempt to reinforce that Netflix is still a good value. I suppose it might still be a good value. But, that’s not the point, is it? Netflix is claiming that this is some kind of “improvement in Netflix service.” Talk about lattes all you want, but do not lie about what you’re doing.
The e-mail from Netflix, the Netflix blog, and everything talking about these increases make no mention of any change, let alone improvement, in the actual service. DVD’s won’t be delivered faster, the discs will still arrive scratched, there will still be a backlog on new movies, and there will still be the “window of delay” when new movies are released for sale.