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A spirit that is not afraid

Customers not happy with Netflix price changes

Netflix sent its 23 million users an email last Tuesday which sparked controversy throughout the country.

Netflix informed users in the email that it is changing its billing plan Sept. 1.

Users may either only stream videos for $7.99, receive one DVD for $7.99 or have both services for $15.98 a month, an increase from $9.99.

"I'm kind of pissed off that the prices are going up," said Nick Bradford, junior in software engineering.

For members who are joining now, the new plan is already in effect.

Many customers share Bradford's discontent, but are having a hard time giving up their subscriptions.

"I'm not too happy with it, but I'm going to stick with it because it's convenient," said Susanne Sturdivant, senior in hotel and restaurant management.

The new billing system came after Netflix and NBC Universal agreed to add more content to Netflix. By doing this, several things changed, most controversially the price.

The deal added shows including "Leave it to Beaver," "Psych" and "Law and Order: SVU." Another major change is that "Saturday Night Live" will no longer be available until the entire season is complete, according to Mashable.com.

"I'd do the same thing," said Caitlin Gelal, senior in international business. "Why not raise your profit and selection?"

Netflix users have the option to put their account on hold, Bradford said.

While an account is on hold, the user isn't charged until the account is taken off hold.

Once the account is taken off hold, Bradford said the user may continue watching videos instantly.

According to The Hollywood Reporter, the deal could be worth up to $300 million per year, compared the company's $25 million in profits from last year.

According to Mashable.com, polls have shown that 37 percent of users claim that they will drop Netflix because of the 60 percent price increase.

"If people cancel because of the price increase, I'm assuming they're still going to watch movies," Gelal said. "In the case that they did cancel their account, then they probably will go somewhere else."

During the past several years, movie stores have slowly gone out of business while Netflix has grown in the industry.

"I think they have a monopoly in the movie world," Sturdivant said. "They're slowly running other stores out of business, and they know that."

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With Blockbuster, Movie Gallery and Video Warehouse going out of business, Hastings is the only video-rental store remaining in Auburn.

"I expect our business to be boosted," said Christopher Caldwell, Hastings counter team lead. "We've already been boosted some from being able to get some of the movies a month before Netflix."

Hastings is the only physical movie store in Auburn, but Redbox has gained popularity recently. However, one downfall is Redbox's limited selection.

While some students are outraged that Netflix would charge more money, Gelal and Sturdivant both agreed that they would do the same thing if they were calling the shots.

However, other students are looking toward dropping their Netflix accounts.

"If Netflix continues to do this, I'm looking to find an alternative," Bradford said.

Despite students' immediate reaction to the price change, only time will tell what the outcome will be with Netflix and its users.

"Don't go up any higher, Netflix," Sturdivant said. "I'm a college student. I'm sticking with you now, but I can't much longer if you keep raising your prices."


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