RE: Hey Void
July 17, 2011 at 9:17 pm
(This post was last modified: July 17, 2011 at 9:18 pm by theVOID.)
(July 17, 2011 at 12:04 pm)reverendjeremiah Wrote: example of GREED:
Netflix raises their price by a MASSIVE 60%. Did they do it to give their workers a bigger raise or more benefits? No. Did they do it for the price of DVD's? No.
Here is their reason:
Netflix Wrote:"We are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice: a streaming only plan, a DVD only plan or the option to subscribe to both," Netflix Vice President of Marketing Jessie Becker wrote on a company blog post.
"Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs," Becker wrote
Can you make any sense of this quote other than they can raise the price because they want to? So here you have the Netflix white colrs giving themselves an extra 60% profit.
So Netflix raise their prices? Great, now it's 60% easier for some competitor to undercut them... No, that quote doesn't explain a price rise and assuming that he's never elaborated beyond that quote it's a simple case of the old political double-speak, but it's not like it takes a genius to figure out the reason for the price hike was "We wan't more cash", I suspect however the reason for the price hike has to do with their losing market share to other competitors such as iTunes, Amazon, Hulu and the like. Netflix might have beaten these guys to market put their pervasiveness is nowhere near as impressive - There are dozens of competitors both nationally and internationally, if Netflix have lost their market share they can no longer operate on a high-volume, low margin business model, now they have to sell less products at a higher margin.
But speculation aside, when it comes down to it they can charge whatever the fuck they like, they aren't forcing you to buy their product and you don't have a right to streaming movies or mail DVDs - If you don't like it well tough, you can either look for a competitor or start your own company if you're that worried about it but when it really comes down to is those DVDs are NOT yours and it's absolutely none of your business what is done with them - You don't get to tell anybody what they can do with their own property, including what they can charge for renting it.
(July 17, 2011 at 4:02 pm)reverendjeremiah Wrote: Not exactly. Im not even sure if your example is something that actually happens in real life. Keeping prices low and salaries decent will help ensure a products lifespan I would think. But, then again, there is no exact way to be 100% sure of such things. There is risk, but to a point. For the ammount I "loaned" in this example, I would not be so impatient for a return. I would suggest that he investigates the competition and find out why the differences are so largely inverted.
Well let's assume that Netflix are a bunch of complete fucking morons and their business model is destined to fail; so what?
.
