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First, Netflix subscribers put up with a price increase of almost 18%. For their loyalty, customers received more defective discs, decreased availability, less bonus disc compensation and terrible new releases. I can't blame Hollywood's sorry excuse for new movies on Netflix but it does effect the overall worth of a Netflix subscription. The recent Netflix price and plan change is a textbook example of why competition is critical to the success of the free enterprise system, which in turn provides consumer value and satisfaction. As the Blockbuster and Hollywood Video stores dry up, Netflix has acquired control of the market which may one day approach monopolistic levels. This permits the attempt by the company to hold their customers as hostages. However, it also provides the perfect opportunity for someone with enterprising resolve to come up with an alternative to Netflix. Here's to Amazon, Redbox and all others who will start to give Netflix a run for their money....and ours.
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Jul 12, 2011