What worries me is the suddenness of the announcement and the high amount of the increase. Surely Netflix could have eased their customers into the higher prices by raising them at a slower rate? Or given the most affected customers a little leeway by knocking a dollar or two off the total price if they subscribe to both services? Or is Netflix hurting for cash to such an extent that they can't even allow that much?
Wellllll, thinking of it from a marketing/politics point of view, if I were running a service, I'd rather have only 1 big rate increase and have to communicate it and deal with fallout from it, and then have the freedom to -- in the future -- play with decreases, deals, subsidies, and so on. If I raise rates a little three or four separate times, that creates an impression that I'm nickel-and-diming my customers and they don't know when the next increase is coming or when it'll stop.
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Date: 2011-07-13 11:01 am (UTC)Wellllll, thinking of it from a marketing/politics point of view, if I were running a service, I'd rather have only 1 big rate increase and have to communicate it and deal with fallout from it, and then have the freedom to -- in the future -- play with decreases, deals, subsidies, and so on. If I raise rates a little three or four separate times, that creates an impression that I'm nickel-and-diming my customers and they don't know when the next increase is coming or when it'll stop.