With a market cap of over $15bn and a share price of $290, Netflix is one of the internet’s highest flying stars. But changes the company is making to its pricing could have it crashing back down to earth.
Yesterday, the company announced that it is offering two separate plans going forward: one for unlimited DVDs by mail, which costs $7.99/month, and one for streaming, which also costs $7.99/month. Currently, Netflix customers can receive both unlimited DVDs and streaming for only $9.99/month.
Not surprisingly, a 60% price increase has sparked an online fury, with angry Netflix customers threatening to drop their Netflix subscriptions.