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Business & Tech

Consumers Lash Out at Entertainment Giant Netflix

Extreme price hikes and the early demise of Qwikster cause consumer and company distress.

As the days get shorter and the nights get longer, there is almost nothing better than curling up with a good movie after a long hard day. 

For over 20 million people, Netflix DVDs and instant streams have served as an alternative source of comfort and relaxation. In fact, last fall cozying up with a DVD or an online stream of The Office would only cost one $9.99 a month. 

However, expensive deals with entertainment companies to secure content forced Reed Hastings, founder of Netflix to raise prices for both streaming and DVD rental by up to 60 percent in July.  

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National Public Radio reported in September that after Netflix raised its prices, not only did its stock drop almost 20 percent; the company lost one million customers. As if it could get any worse, in September Netflix announced that it was splitting its DVD and streaming services into two separate enterprises, starting with the launch of Qwikster, which would have offered DVD and video game rental services. Together, a customer who wanted to continue streaming and renting content would have to pay at least 16 dollars a month.

Today, Netflix revealed the not so shocking statement that Qwickster is dead on arrival.  During the Marketplace segment which aired today on NPR, American Public Media reported on this development. Contributor Barton Crockett explained that consumers rejected [Qwikster]. They ridiculed it. Reed Hastings heard and he's retreated. He's made the right choice, which is to give up a bad idea.”

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To fully understand the severity of this situation, check out the Huffington Post’s break down of exactly how many customers Netflix has lost as a result of extreme price hikes and the failed launch of Qwickster.  

Needless to say, the decisions Netflix has made in recent months has caused a memorable internet backlash, proving that consumer complaints can sometimes change the course of even the largest and most influential companies out there.

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