Commercial Product Fail of the Week: Netflix

Time and time again we are betrayed by our beloved discount services. We watch companies pop-up that offer some of our favorite things or services at cheaper prices than we currently have at our dispose. Even the mothership of cheap/discount products, Wal-Mart, trick us in to thinking we have a new one-stop location for an item or product.

This time, Netpricks, I mean Netflix, have Walmartized themselves. Netflix offered convenient video rentals for our tool shed home (tool is a term I learned a few years back that refers to Americans never having to leave their house for everything they need). Netflix's services were a mere $7.99 per month - wow 7.99!? We couldn't rent two DVDs from Blockbuster for $7.99.

Blockbuster...RIP. Thanks to Netflix, you could get cheaper movie rentals without ever even having to leave your house (except of course to walk to your mailbox). Such services at such rates successfuly and rapidly started to shutdown Blockbusters all over the country.

Aha victory for Netflix. Their biggest, and basically only competitor was no longer a factor. Now that they have the video rental market to themselves, it's time...time to raise prices?? Less competition = higher subscription rates and thus, less need to charge even $7.99.

Big business at it's best. And no, the argument regarding a need for more resources (people, places, etc) doesn't hold true for Netflix. They are operated out of one huge warehouse. Think about it, they just need envelopes and DVDs - it's not even like they have a ton of each DVD to send out - otherwise there would be no need for a wait list for your favorite movies.

So, here's to you Netflix. You put Joe the Plumber (err DVD store clerk) out of business, and successfully shut down your biggest competitor. Looks like it's time to add the American people to the list of those you screwed. Problem is, we are YOUR customers. Unlawful rate increases for an unchanged product/service is an ugly side of corporate America that we DO NOT like - bad economy, high gas prices and now greedy Netflix higher-ups, trying to squeeze yet another dollar or 7.99 out of us.