• Many Netflix users got a rude awakening today when they got an e-mail noting that prices were going way up on their combined DVD and streaming plans. It led to huge amounts of rage on the Interwebs after the report leaked. While we think this particular bout of rage is a little much, the real problem here is that Netflix has misjudged its customer base. The thing is, lots of customers would probably love to stream all their movies instead of waiting for DVDs in the mail, but the company’s seemingly jumping the gun. This is a change you make when your streaming service is at near-parity with your DVD service — which isn’t the case at all. The problem we see here is one of a thousand small cuts — changing the API so that third-party apps don’t work, redesigning the first-party apps to discourage DVD queues — that have created the overall effect that feels like a betrayal to many. For movie aficionados, the long-tail value is still there. But for more occasional movie fans who don’t veer too far off the beaten path of Hollywood fare, Redbox may have just gained a huge leg up. (photo by Flickr user Jamiesrabbits) source

Posted by Ernie Smith • Permalink