Recently, Netflix angered a large amount of its US subscriber-base by announcing changes to its pricing model. It used to be that, if you wanted to do the Neflix videos-by-mail thing and stream content as well, it would only cost you an extra couple of bucks per month. Now (as of two days ago, in fact), if you want both, you need to pay double — $7.99 for each service. While the Netflix move may be understandable, and part of a potentially larger plan to phase out physical delivery altogether, the customer backlash was also unsurprising — and significant.
To make matters worse for Netflix, on the very day that the new pricing came into effect, Starz, the distributor of Sony and Disney content decided not to renew their contract with Netflix. This is probably going to hurt Netflix customer relationships even more, but believe it or not, it happened as a result of Netflix attempting to preserve their pricing model, and, presumably, to keep their customers from imploding.Read more