Netflix's stock price goes higher even with protests over price hikes

Netflix customers may not like the fact that the streaming video company has just boosted the price of some of its subscription plans by as much as 60 percent. But investors in Netflix seem to be happy with the moves. CNN Money reports that at the moment the stock price is up by nearly 3 percent today and did reach an all time high.

Apparently investors believe that the price hikes, which affect customers that use both the DVD mail order service as well as the streaming video business, will ultimately be good for the bottom line. One reason is that investors believe that many current Netflix customers will simply continue to use the service even after the price hikes go into effect on September 1.

However, as we have reported earlier today, there is a massive amount of outrage by current Netflix subscribers to the changes. The Netflix blog site and Facebook site, among many others, have been flooded with messages about the decision with the majority of them against the price hike and many saying they will either cancel or cut back on their subscriptions. Currently, Netflix has a total of 23 million subscribers but it's not known how many of them have the DVD-streaming combo deal

In the meantime, Netflix hasn't officially commented on the net protests. Instead, the company announced it has renewed an agreement with NBCUniversal to offer a number of their movies and TV shows on their streaming video service. That includes offering episodes of TV shows like 30 Rock and The Office one year after they are shown on NBC.

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I was thinking about this today, im just going to go to the streaming only netflix plan and start using redbox for my DVDs.... if redbox works out well, i might just stick to redbox and forget about netflix.

Redbox is $1 dolar a day and netflix would be $8. With redbox i can get 4 movies (because i probably wont keep them for just 1 day)

I really only get about 1 DVD movie a month from netflix on average.

Either way, i figure netflix isnt going to care about who leaves... the 60% increase will cover the gap and they will be fine.

See this is why they say you have customers and then you have clients. Your clients are your stock holders and they want you to make money. Your customers are sharks that just want to cut you up, rob you, run you over with your own truck and keep on moving!

I remember when we used to go out of our ways to go to visit a specific shop because they treated us good. Now it's like, oh no - you aree't supposed to feed your family and or make any money. You are just supposed to serve my needs for free. In this case your need are being met, even if barely but instead of paying more to get more, you want to pay less and get more!!

SHoTTa35 said,
See this is why they say you have customers and then you have clients. Your clients are your stock holders and they want you to make money. Your customers are sharks that just want to cut you up, rob you, run you over with your own truck and keep on moving!

I remember when we used to go out of our ways to go to visit a specific shop because they treated us good. Now it's like, oh no - you aree't supposed to feed your family and or make any money. You are just supposed to serve my needs for free. In this case your need are being met, even if barely but instead of paying more to get more, you want to pay less and get more!!

Wow, that's not true at all. Customer's simply don't like getting bent over and raped, and that's what it feels like Netflix is doing to us, since they aren't grandfathering people's plans. Loyal customers that have been with Netflix for 5 years and had a grandfathered plan will have to now pay more?

Customers don't want to suck a company dry, they just want to be treated fairly.

Ok, let's put it this way, you were riding high as a Prince before even when you weren't deserving, now you are back down to earth as a honest worker. You think, Blast those people for putting me where i belong!

Here's a good read for people that just don't know from Gizmodo: http://goo.gl/Ig7Bs

just cancel the DVD mailing and your set.. They obviously do not have the economies of scale for DVD service that they have for internet service.. I would rather them focus on making more money and cutting off the fat and get better shows online.. stop mailing dvd's

Bought me a new 500gb HDD... set my boat in the water and put the sails up... hitting the high seas before the 6 strike law comes into effect... ARRRR MATEY!

People dropping service won't cause no problems.. what will cause issues is all the current BAD PRESS they are getting!! Its very likely to make the evening national news on many stations.

There another article that in 2012 when Neftlix re-neogiate with content owners, content owners will be charging 10x the amount they were before.

If content owners push netflix out of the market (I have a feeling they do) I think it will spike piracy again.

If that article is true then I can see the days of Netflix counted. Customers will definitely leave and another internet business going down the hill.

It's win/win for Netflix. People will drop DVD and keep streaming, thus reducing DVD overhead costs, OR they'll keep it and pay $16 a month, $6 more per month for the service, meaning more revenue for Netflix. Smart move.

Elessar said,
It's win/win for Netflix. People will drop DVD and keep streaming, thus reducing DVD overhead costs, OR they'll keep it and pay $16 a month, $6 more per month for the service, meaning more revenue for Netflix. Smart move.

somewhat. OR... switch to newsgroups for $11 (far more for your money)

even if some customers cancel their accounts because the price will be going up, investors and the company will still make money. In America, customers will pay the price increases for any service and companies take full advantage of it. Money is the bottom line and customers are just a number until they want you to pay more