>>Why can’t a business raise prices?<<
They can, however if they want to keep customers, they give an explanation and treat their customers with respect. Netflix dropped a bomb on customers that had been loyal for years.
Just as a business can raise prices, a customer can drop the service. Most businesses work to keep those people.
Oh, and this was far from an apology. It was am “explaination” that the CEO gave with a smary smile on his face. It was an announcement of the split. Watch the video. I’m surprised he didn’t have a teleprompter or two.
Modest price increases are to be expected; Netflix's price increase (depending on the plan used) was in the neighborhood of 60%.
The cost of DVDs hasn't gone up.
The cost of postage has gone up maybe 2 or 3%.
That leaves the cost of streaming. If the cost of streaming has somehow gone up 60% (which is doubtful) then they need to do a better job explaining it.
Oh, and this was far from an apology. It was am “explaination” that the CEO gave with a smary smile on his face. It was an announcement of the split.
This is being done to save Netflix and nothing else.
The DVD rental industry has a few more years at most and everyone knows it. Qwikster is being set-up as a business that will die quietly in the near future.
Netflix will now be able to advertise that their most expensive plan is under $8 a month. Streaming is far more lucrative because it requires a much smaller staff, no packaging, no postage and the product never gets damaged, lost or worn-out.