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July 12, 2011

Comments

Ellen Gunty

@Jonathan
Thanks for commenting. I agree on both counts. I also don't think both products are of equal value as pointed out in my post which makes pricing them equally silly. At the moment Netflix is implicitly advertising something they can't yet deliver-two equal products where the consumer has their choice of delivery. It's no wonder that they have been inundated w/complaints from customers. This will be my last month unless they revert to the old policy. Otherwise it's either Blockbuster or Redbox here I come.

Jonathan D

I see two problems with the new system - one as a user and the other as a business observer.

As a user, I resent the fact that they heavily promoted the free streaming system, encouraged hardware purchase, and then yanked it away. Had they offered something for nothing and then taken it away, that would be okay, but now I'm invested in a Roku, so if I pull the plug, I'm down $70.

More objectively, I'm very surprised that there is no savings on the bundled price. Maybe streaming is worth $8, and maybe the CD is worth $8. When you get them both, the total is less than the sum of the parts, because they overlap. This really encourages one to choose one or the other and not splurge for both.

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