When you make a really big mistake, the best possible outcome is that you learn from it and never make it again. It would seem Netflix has done that, based on an email sent out Friday about the company’s pricing plan.
The price of the streaming service is going from $7.99 to $8.99 for new customers, but existing Netflix subscribers will stay at the $8 price point for the next two years.
The last time Netflix changed the pricing structure of its service, things weren’t handled quite so well. Originally, Netflix’s entire service — including streaming and DVD rental — were all under one umbrella. The whole package cost $9.99.
Then, in 2011, as the company’s instant library grew in popularity and size, Netflix unbundled the services. Streaming users would pay $7.99, and DVD renters would also pay $7.99. But if you wanted both, you suddenly went from paying $10/month to paying $16/month, a 60 percent price hike.
The company’s explanation of this was unclear and poorly executed, and the move resulted in a share price dive from which it took a while to recover from.
Here’s to clear communication and rewarding brand loyalty! Well done, Netflix.