Quote:
Originally Posted by iamtam
simple math question. $9 a month to $16 a month is a sizable increase, enough that their net income after admin costs more than doubles. they could lose half of their subscribers and still be in as good a position.
with no real competition in the field worth mentioning, they can get away with raising their prices.
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RedBox is competition. Anyways Netflix has ALWAYS stated that the end game is streaming. So the fewer people that rent DVD means less money spent on DVDs less money spent on postage. Not to mention storage, envelope costs etc etc. money saved by fewer renter can be used to aquire stremaing content. For those that stay that extra money helps aquire more streaming content. I doubt Netflix made money giving people 1 DVD at a time unlimited AND streaming for $10 a month. I doubt they make money on the new 1 DVD at time tier for $8 and no streaming. All the people on other messageboards complaining have no clue what it takes to run a business. They expect everything for basically free or they are being "fucked over" or "raped".