Netflix hits another roadblock

I am obviously a huge move buff, and because of this fact I love the service Netflix provides in enabling me to stream movies readily, legally and easily. However Netflix seems to be stumbling over its own feet since late last year and has hit yet another hitch already this year.

           

Already Netflix has lost Starz Play late last year but just this month HBO has pulledaway its help to the streaming service. However unlike Starz, HBO has just taken away their deal with Netflix to get their HBO shows through other wholesalers it doesn’t change the fact that it means Netflix will have to shell out more per DVD which could mean less HBO shows that will be streaming ready and possibly less DVDs able to go out at any given time.

            However the shocking part about all of this is the way the CEO has reacted to both problems deftly pointing out Starz was “only” 8% of what people watched through streaming and more wisely said it would open up some money to be allocated to other possible options. He kept the same Stoic prowess this time by saying that HBO and Netflix aren’t direct competitors and even said that if you can’t afford both you can give up HBO to afford Netflix.

            Aside from the smart words coming from Netflix’s CEO there is no denying all this flack is coming from the price hike they have put onto their customer base. This makes me question if this price hike was really in the companies best interest because it shook a lot of faith in their customer base and is making other companies question their sustainability in the future. I do understand licensing fees are what caused the hike but Netflix executive must be asking if their should’ve been a better way to get around them.