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Netflix the Bully

by: Ross

Netflix made major waves earlier this week when it announced it was going to increase the prices of some of its subscriptions plans.  As Yahoo Finance reports, many subscribers are responding the rate increase by either downsizing their subscription plans or by leaving Netflix altogether in favor of a competitor (e.g., Blockbuster, Hulu, RedBox, Amazon Prime, etc.).

Many, however, aren’t stopping there.  Huge numbers of Netflix customers are finding venues to vent their frustration with the price increase.  At the moment that I’m writing this, there are 66,201 comments on Netflix’s Facebook wall, most of which express dissatisfaction with Netflix.

If you, like me, have a low toleration for jerks, perusing these comments will be an exercise in self-torture.  I didn’t spend a lot of time reading them.  I just read enough to get a representative sample.   A lot of the comments were to be expected and were appropriate (though probably unnecessary), e.g. “I am cancelling my plan because of your price increase.”  Most were indicting Netflix for its “greedy” business tactics.  However, my eyes were immediately drawn to this little gem: “Don’t let Netflix bully you into a price hike!”

So Is Netflix Really A Bully?

I happen to be a Netflix customer and I, of course, received the email announcing the change in rates.  I will not post it here in its entirety, only because I’m unsure of the copyright status of the email.  Here are the bullet points:

• Netflix is separating its streaming plan and its dvd-by-mail plans into distinct, separately priced plans (these plans were previously combined under one price)
• The prices for your current plans are now $7.99 for streaming and $7.99 for dvd-by-mail, totaling $15.98 (previously $9.99) effective September 1, 2011
• “You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.”

If only bullies were like this in real life!  It’s difficult to imagine a child receiving such an email from the local school-yard bully:

Dear Johnny,

I’m writing to inform you that I’m separating and individually pricing my bullying plans.  While I previously offered you one plan of “Unlimited Taunting and Beating,” I will now offer separate “Unlimited Taunting” and “Unlimited Beating” plans.  If you want to cancel either or both, click on the following link.

Thanks!

Bobby

It’s pretty clear that the last lines of these messages rule out the possibility that either of these parties are bullies.  Bullies don’t give people a choice about whether they bully them!  The managers of Netflix are not forcing anyone to pay higher prices.  They gave all of their customers a 1.5 month notice of an impending price increase and encouraged their customers to change and cancel plans as desired.

If the price of Netflix service is increasing to the point at which the cost of the plan exceeds the benefit you receive from the plan, your problem is easily solved: cancel (or downgrade) your plan.  They even gave you the links through which you can do it!

If, like me, you realize that the plans offered by Netflix are, in many respects, still superior to all competitors even at the newly increased price, then keep your plan.  That’s it.

Who Is Really The Bully Here?

Unfortunately, that isn’t all there is to say on this matter.  Reading through a few more of the comments leaves me with the distinct impression that many disgruntled Netflix customers are not satisfied with a solution that only involves cancellation of their plans and vociferous complaints.

One woman suggests that everyone email the managers of Netflix.  When another commenter points out that the managers likely filter emails not containing the @netflix.com domain name, she responds:

…Yeah, I know but it felt good and if a lot of other people email them it will screw with their inboxes.  LOL!

Another commentator says:

If you want to F with them, call the customer service line and keep them on the phone for over the -2 min goal they have.  Blow up their phones.  Make those who are on the front line dealing with customers hate every hour and maybe they will join our rants and we will all win.  Seriously if you have the time, tie up their phone lines.  They will hate it like you can’t even image.  LOL.

Yet another commentator offers us this:

f*** you netflix…i will piss and scratch every dvd you send until sept 1…f***ing a**holes…redbox is the s***…you aint

So apparently we should collaborate with others to render the phone and email unusable at Netflix headquarters, and, while we’re at it, we should throw in some vandalism for good measure?

This makes me wonder whether these fine, upstanding citizens are also going to email Netflix a timely and polite message instructing them on how to cancel or downgrade this unwarranted abuse.

To call Netflix a bully is to confuse a perfectly legitimate business decision with the use of physical force.  This is, of course, not the first time people have confused this basic issue.  History abounds with accusations that capitalists are “Robber Barons” who somehow force the meek to do their bidding.  How do they do it?  Apparently, according to the detractors of capitalism, earning and spending large sums of money gives the capitalists even more power than the use of physical force.  This is not true in general, and is obviously not true in the case of Netflix’s recent rate hike.

With respect to Netflix’s detractors, I’m inclined to agree with Francisco d’Anconia, from Atlas Shrugged, when he says:

The rotter who simpers that he sees no difference between the power of the dollar and the power of the whip, ought to learn the difference on his own hide.[1]