GET READY NETFLIX CUSTOMERS - THEY'RE RAISING RATES AGAIN!!
Netflix is raising its rates again. This time by as much as 60 percent for millions of us!
The company has separated the plans so that those of us who want movies delvered and the ability to stream movies will have to buy separate plans totaling more than $16 per month, up from the current $9 per month.
Netflix began sending video over high-speed Internet connections in 2007 and rasied it's rates then across the board. Netflix has steadily refused to say how many subscribers get the streaming-only options, but an inside source claims it to be "extremely High". Investors seemed to welcome the higher prices in stride.
Netflix's stock rose 53 cents to close $291.27 upon this announcement. Of course the investors loved it. It's more money for them. I bet Netflix didn't raise their rates. Netflix's market value has increased by seven-fold and created about $13 billion in shareholder wealth during the past two years largely because its total subscribers have more than doubled during the same stretch.
As of March, Netflix had 22.8 million subscribers in the U.S. -- about 34,000 more than the number of households subscribing to Comcast Corp.'s cable-TV service. The higher prices could slow Netflix's growth as some customers cancel their plans in protest as I have already done.
Subscribers, like myself were rankled by the latest price increase vented their outrage in comments on Netflix's blog as well as its Facebook page, where there were about 5,000 comments and Netflix stopped all comments on their blog,
Of 5,000 comments, we couldn't find one positve one regarding the rate change. Several of the posters were promising to leave Netflix to try out rivals such as Apple Inc. and Hulu.com, which is currently looking for a buyer.
Bottom Line: Cancel your membership with Netflix. The revenue they are hoping to get will be lost by customers like myself leaving in protest.