Subscribers Flee Netflix After Price Hike

By
Share:

Never have we seen online culture pundits as divided as they’ve been over Netflix’s new split pricing plan: While some complained about getting less product for more money (as distributors begin to drop out of the streaming service), others argued that $7.99 each for unlimited streaming and one DVD at a time is still an excellent deal. Now that the price hike has gone into effect, subscribers have had their say — and they don’t seem happy. Variety reports that Netflix has cut its third-quarter subscriber estimates by a million, and although the company is standing by its decision, the news has already brought its shares down by 13 percent. Although Netflix’s reasoning for increasing the price point for its services included hopes of growing its streaming service, the Wall Street Journal points out that lower subscriber numbers could mean that it won’t have the money to invest in that content — and that could mean losing out to such rivals as Amazon and the Dish Network. So, readers, what do you think? Should Netflix return to its old pricing scheme or stick it out in hopes of turning things around?