Whether or not the CEO wants to understad it, you really have a "contract" between you and your subscribers which is predicated on the type of usage they have TODAY, not your projected need for cash flow. If you offer it for free, it has to be free, find another way to make revenue. If you offer the service for $9 a month, then it is $9 a month, unless you offer the user MORE FOR THE MONEY.
In fairness to NFLX, the streaming service, while having a more limited selection, is a much more valuable delivery method. While a single "exchange" of a DVD takes at least a couple days (limiting the number of viewings in a given month), the number of viewings via streaming can be much larger which is more expensive for NFLX. At the same time, while introducing the streaming product, it is reasonable for them to keep prices low. They HAVE expanded the streaming content, although it still is quite limited and unimpressive.
There is no contract. You can quit whenever you want; and NFLX can raise prices whenever IT wants.
It is totally predictable. All subscription content delivery services do it, because content costs always escalate.
I've long though NFLX was dirt cheap for what you get. I honestly don't know how anyone can stay in business selling anything at all for 10 bucks a month. Yet, these guys can make money at it. |
