Netflix Makes a Bad Move With Higher Prices

In the past few days, Netflix customers have been shocked to find out that the company has increased its prices by more than 60%. Because of this high rise in prices, Netflix is at risk in losing over half a million customers by the end of September. Ever since they announced that they wanted to increase prices, the company's stock prices went down 19%, thus causing a lot of  financial loss for their shareholders.  People are starting to turn their backs on Netflix's services because they feel the company isn't doing much to give their customers better quality of content. So why should they rise their prices if they're not evening doing anything to improve their services? But Netflix stands by its decision to keep the higher prices, saying that they see this as a the "right long-term strategic choice." They feel that the longer the keep up with these high prices that eventually people will give in and just pay the price they have set sine Netflix is the leading provider of on-demand internet streaming media in the United States, Canada, and Latin America. 
My view:
Netflix has a certain competitive edge over their customers because they are the only ones who offer release out movies as they come into the movie theaters. Although Netflix has already lost a good number of customers, the company believes they still will make a larger profit than they could with a larger number of customers. But I also see this a turning against the company because people will either start to cancel their accounts or just subscribe to plans that don't cost much to begin with. With the economy these days, people are looking for cheaper ways to order movies. That is why other companies should take this opportunity to offer cheaper subscriptions to people and gain popularity through lower prices. A perfect example of this is sites like Amazon, who are already taking some of Netflix's customers by creating a free-streaming service to people. Seeing all this pan out, perhaps Netflix should definitely rethink its strategic choices before it decides to raise its prices again.


http://finance.yahoo.com/news/Higher-Netflix-prices-equals-apf-1466852939.html?x=0&.v=8