Photos of Raul Colon Web Developer Puerto Rico

Yesterday I received an email regarding @Netflix price changes. When I started my Netflix subscription I really enjoyed it. I was a @netflix customer for a few years.

One thing that I did not have as a customer was the convenience of shipping out movies since I did not have a postal office close enough where I could easily drop movies. I can bore you to death with many stories of when I go out to drop my @netflix movies I can’t find a mailbox close by. The other day it got to the point that I was right in front of the Post Office and since it was closed I could not access the Mail Box.

These last few months I have been so busy in between building my business, traveling for a whole month on @jetblue’s All You Can Jet, moving, and writing on various (unknown) blogs that my @netflix movies where just sitting there.

So I called to cancel today and I had to hold for a good amount of time. Once I got on the phone the process was very simple I told them I wanted to cancel for the following reasons:

  • The last 3 movies I requested I had them for an average of 6 months (the first one I have had since the beginning of April. I thought this main reason would make me a @netflix platinum customer. (CLICK TO VIEW LARGER IMAGE)

Photos of Raul Colon Web Developer Puerto Rico

  • If you are in Puerto Rico you don’t have the option of live streaming since.
  • It takes longer for movies to get here than it does in most states.
  • They decided to charge me more for what I was not using already. Instead of analyzing how profitable I am (since I never return the movies) they decided to let me go just to make a few more dollars. I guess now their profit is Zero.

I joke around with being a @Netflix Platinum customer since I pay them and I don’t even use there services much less their support. My cost to them as to keeping mas a customer is pennies compared to the dollars I gave them.
If I calculate how much money I gave @netflix vs. how much I cost them I have detailed the amounts below.

Netflix Profit from me for the last 6 Months

6 month subscription (including tax) = $109.08
– Sending 3 movies via mail = $5.00
Total Profit Last 6 Months= $104.08

Projected 6 Month Income After January

6 month subscription after January (including tax) = $128.34
– Sending 3 movies via mail = $5.00
Total Projected Profit for 6 Months after January= $123.34

I guess to make an extra $19.26 cents in 6 months, they lost a customer and now they make zero revenue and profit from me.

I think they are moving to a Long Tail Business Model where they are eliminating their overhead of shipping by moving customers to Streaming Video via their computers. That sounds like a great business move for @netflix and a great option for those outside of Puerto Rico.

I really don’t understand how @netflix can charge Puerto Rico customers the same amount when it offers less services and there cost of keeping us is the same if not less.

Where you aware of the Price Increase on @netflix? If you are in Puerto Rico what do you think of @netflix increasing prices when they offer limited services?

Have you identified any other companies who lose customers because they take a similar approach?

If you where a @netflix customer are you moving to other plans, paying more, or leaving?

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2 Comments

  1. Rafa on March 2, 2011 at 12:01 pm

    It’s a shame that the are too lazy to get the streaming issue resolved. Back when Hulu Plus started beta I emailed them that some content would not stream to PR stating that it was nit part of the US and they responded in a few weeks and resolved the Netflix on the other hand doesn’t even say “we are going to try”.



    • Raul Colon on March 2, 2011 at 1:23 pm

      Rafa,

      So Hulu Plus does Streaming for Puerto Rico That is great.

      Thanks for stopping by to comment.