Some Ideas About The New Customer Scheme
Recitation section number: ACCT 308-151 RCT (5225)
Recently, our company has increased the price of our service which included the DVD rental and streaming. And I received a great number complaint voice from facebook and twitter. People expressed their depression about the increasing price. Somebody said he will try to use the service of our competitor, like Hulu and Redbox. And the other guys maintain the idea that even our service price is more expensive than our competitor, the quality of the business is always better than them. In my opinion, increasing price is a kind of tendency, especially for the enterprise like Netflix. In next, I will give you some analysis of this action of changing in its customer pricing scheme. First of all, there is a background in present day. It is the cost of streaming providing has become more and more step by step. And we need keep the profit by increasing price. Daniel Indiviglio who is an associate editor at The Atlantic said the new customer scheme has No Value Added in his article “Why I'm Happy Netflix Raised Its Prices”. Well, I just want to remind him to notice the cost, not only just in profit. In recent day, we always held talks with Starz who supplied the streaming to Netflix. And we didn’t get the common view in this cooperation. So I think increasing the streaming service price is just a tendency. Furthermore, although the physical media has brought lots of profits, streaming is the future, not DVD rental. As the development of technology and internet, people always prefer to choose the steaming, because it is more convenient. For Netflix the streaming is also potential. It likes the “blue sea” which is a concept in administration and the direction of our innovation. Cite the sentence of Netflix’s chief “Streaming is the core of our business and it is growing rapidly.” he said “Streaming is much bigger than DVD for us in terms of hours of viewing, growth, and focus....
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