Netflix claims it was prepared for price hike backlash

The massive outcry of many Netflix subscribers over the company's decision earlier this week to raise prices by as much as 60 percent on some subscription deals was prepared for. At least that's what a Netflix spokesperson is telling the press. News.com reports that Netflix spokesman Steve Swasey states, "We tested, we researched, we analyzed. We knew what the reaction would be. We are not surprised. We knew that there would be some people upset by the service and with the price being adjusted."

The price hike, announced on Tuesday, separates the streaming and DVD mail order rental plans which means that customers who want both will now have to pay nearly $16 a month. Many Netflix subscribers hit the Internet writing and voicing their displeasure with this move and many said they will be canceling their subscriptions or at the very least change to just getting either the streaming or the DVD mail order plans. When asked if the negative response to the price changes might cause Netflix to change their minds, Swasey said simply, "These are our prices."

Netflix subscribers are also calling the company's customer service phone lines and it looks like, at least at the moment, it's hard to get through to a Netflix employee in a timely manner. News.com states that Rich Greenfield, a Wall Street analyst with BTIG Research, called Netflix's customer service number 35 times in two hours on Wednesday. He claims that the hold time for each call was between 9 and 15 minutes. News.com also confirmed with a Netflix employee that the company had hired extra people to man the phones this week.

Greenfield, however, says he was not happy with the responses he got when he did get through to a Netflix customer service rep. He states, "There was simply no promo or 'save' technique to offer us a discount to retain our business. This would appear to illustrate that Netflix is simply not concerned with the prospect of losing customers."

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