The Dark Side of Netflix

Netflix Underground is not affiliated with Netflix, Inc.
Showing posts with label charge. Show all posts
Showing posts with label charge. Show all posts

11/06/2013

To All Blockbuster Refugees Considering Netflix

If you are a displaced Blockbuster customer and you are looking for a new home, you probably came across Netflix Underground while looking for information about Netflix.  If you are considering singing up with Netflix, make sure to do plenty of research before you give them your credit card or bank information.  If you browse through the years of articles on this site, you will find Netflix has a sketchy reputation built around more than a decade of sleazy corporate behavior.  Make a list of everything you hated about Blockbuster Online and multiply that by three. 

Yes, Blockbuster was a profoundly lousy company with many sleazy tactics, but many of their tricks in the DVD-by-mail business were pioneered by Netflix long before Blockbuster Online even mailed their first DVD.  If you are a Blockbuster refugee and you are considering giving Netflix a try, do yourself a favor and first browse this site or do some Internet searches with the following terms.

Netflix throttling
Netflix lawsuit
Netflix credit card charges
Netflix missing DVD charge
Netflix cancellation problem
Netflix delay
Netflix tactics
Netflix staging media event
Netflix price increase
Netflix shipping


What you will find will not be pretty, but at least you will be armed with some knowledge before making a decision that could lead to a lot unnecessary aggravation.

9/19/2011

Netflix Quickly Takes Cover with Qwikster

Facing an overwhelming backlash from subscribers, Netflix CEO, Reed Hastings has come forward and apologized for what has probably become the biggest public relations debacle in the history of Netflix.

When Netflix abruptly spilt its DVD-by-mail service and streaming video service into two separate services and effectively increased subscription fees by 60%, many--perhaps millions--of Netflix's subscribers became angry and threatened to close their accounts. Arrogantly, Netflix did little to manage the crisis. Netflix's attitude seemed to be: We are the leader in the video rental business. If you want our services, you will accept delivery however we choose, and you will pay whatever we tell you to pay.

Netflix did not use those exact words, but that is what the public heard. Rightfully so, the subscribers rebelled and began canceling their subscriptions.

Under such pressure, one would assume Netflix might retreat and come up with a plan to assuage consumer anger, but Netflix did not do that. Sure, Reed Hastings/Netflix apologized for being arrogant and communicating poorly, but that is about it. In a further act of arrogance, Netflix has chosen to rename its original DVD-by-mail service and permanently break it off from Netflix (as if that will fool enough people).

The new name is Qwikster. Yes, Qwikster is a cheesy hipster appellation, and this playfully misspelled name is so 1990s. Sure, Qwikster sounds like some shady file-sharing Web site from Romania, but it is actually a repackaging of Netflix's DVD-by-mail business.  (Yes, this probably will fool enough people.)

If you want to be a member of Qwikster, you are going to have to pay for it, and it will show up as a separate charge on your credit card each month. Even if you maintain a Netflix subscription for streaming content, your credit card statement will have a charge for Netflix and another charge for Qwikster.

Adding to the inconvenience for subscribers, Netflix and Qwikster are to function independently. For example, if you review a movie on Qwikster, the review will not appear on your Netflix account, even though you may be paying for both services. Also, if you need to update your credit card information, email address, home address, phone number, or other account information, you will have to do so twice: once on the Netflix site and once on the Qwikster site.

Some consumers may feel more comfortable with paying for two subscriptions when the subscriptions are under different names, but the reality has not changed. Netflix has reduced subscriber benefits and is charging significantly more for significantly less. If making payments under two different company names makes subscribers feel better about it, then so be it.

9/16/2011

Canceling Netflix? You Are Not Alone

Angry subscribers warned Netflix, but Netflix did not listen. Netflix subscribers threatened to cancel their subscriptions if Netflix raised prices. Netflix raised the prices anyway, and many subscribers appear to be following through on their threats.

If you are one of those incensed subscribers and you are ready to exit Netflix, you are not alone. Read "Higher Netflix Prices Equals Fewer Subscribers" by Michael Liedtke for the details.

If the Netflix member cancellations continue, it could possibly become fashionable to drop Netflix. These customer backlashes tend to take on lives of their own and snowball. Just ask the last company who dominated the video rental business, got too cocky, and started screwing around with their customers. How did that work out?

With the added revenue from much higher subscription fees, Netflix may very well weather this storm, but the New Red Menace may have gone a bit too far this time. We will just have to wait and see how many subscribers are going to continue taking the abuse from Netflix and how many are going to find somewhere else to wait weeks for new releases, rent scratched DVDs, and have their ISPs and computers blamed for streaming video problems.

7/23/2011

Notify Your Credit Card Company About Netflix Membership Cancellation

Even if you take great care to properly close your Netflix account, it is possible that Netflix may still try to hit you with additional charges after your subscription has ended. Netflix could make claims of an improperly closed account, missing DVDs, missed deadlines, etc. If this happens, you have the right to dispute the bogus charges with your credit card company, and, if you are a customer in good standing, there is a decent chance your credit card company could side with you.

You do not have to wait for a problem to occur to take action, however. If you are concerned that Netflix could hit you with bogus credit card charges after you close your Netflix account, you might consider being proactive and contacting your credit card company before you close your Netflix account. You can notify your credit card company of the date you plan to close your Netflix account and the date after which Netflix should not be billing your card. You could still get hit with additional charges, but you may then have a stronger case if you need to dispute any suspicious charges from Netflix.

7/22/2011

Charges for "Missing" DVDs After Canceling Netflix

Too many people are making a costly mistake when canceling their Netflix subscriptions, and since there may be many Netflix membership cancellations between now and September, this is a very important special reminder to help save you from a nasty surprise after canceling your Netflix membership. If you read only one thing on this site between now and September, read this:

Absolutely, clear your Netflix queue of all DVDs and make sure all of your Netflix DVD returns have been acknowledged by Netflix before closing your Netflix account. If you do not take this precaution, Netflix may charge you for DVDs they claim are "missing."

Numerous former Netflix members have reported that Netflix charged their credit cards for missing DVDs after they properly closed their accounts and returned all of Netflix's DVDs. Unfortunately, Netflix is always in control of any evidence when this happens, so there is no way to prove the fraud.

Once you close that Netflix account, barring signature confirmation, you have no way to prove Netflix received all of the DVDs you returned to them. Netflix may claim you did not return your DVDs, and they may stick you with a charge of $20, $40, $60, etc. on your credit card. If Netflix does this to you, you may have little recourse. You will have to dispute the charge with your credit card company. If your credit card company does not side with you, you will be responsible for the additional charges from Netflix.

So, clear your Netflix queue, and return all of the DVDs well before your cancellation date. If all DVDs have not cleared your account, report them as missing before closing your account. If you really want to be safe, you might consider sending your DVDs back with signature confirmation. Yes, signature confirmation is a pain, but so is paying for DVDs you already returned. If you can produce proof of delivery, you will have a much better case if you need to dispute Netflix's charges with your credit card company.

7/13/2011

Netflix Price Increase Marks a Good Time to Plan Your Exit

Exit Netflix Sign

Perhaps growing comfortable with their market share, Netflix has decided to dramatically increase prices. The new pricing structure will divide Netflix customers into two basic classes: those who stream video and those who receive DVDs in the mail. If you want to stream video and not receive DVDs in the mail, you will pay $7.99 per month. If you want to receive DVDs in the mail and not stream video, you will pay $7.99 per month. If you want to stream video and have one DVD out at-a-time, you will need to pay $15.98 per month for the privilege.

For some subscribers, this will amount to a 60% price increase. An increase of around $6.00 per month may sound manageable, but when considering that amounts to $72.00 per year, the cost becomes a significant issue. Also, consider that Netflix is a luxury expense. In how many areas of your life are you willing to accept a price increase of 60% on a luxury expense with no appreciable increase in service? For example, if you frequented a restaurant and it suddenly raised its prices 60% without improving the food or increasing the portions, how often would you return to that restaurant?

It appears Netflix is aggressively trying to discourage subscribers from renting physical DVDs. Netflix must really hate paying the costs of a DVD-by-mail business. Even though Netflix subscribers have become largely accustomed to being abused by Netflix, a price increase of 60% with no substantial increase in subscriber benefits seems a bit extreme and could be seen as almost a deliberate hostility toward DVD renters.

Assuming you've suffered some sort of dreadful head injury and you now wish to begin a new Netflix membership, you have no choice but to accept the price increases right away. If you are an existing Netflix subscriber, you have until around September to change your viewing habits or get hammered by the big increase.

You may have noticed that you can't spell "Netflix" without E, X, I, and T.  You may have also recognized it may be time to start looking for the way out.  Fortunately, subscribers have a few weeks to plan their exits from Netflix. If you are Netflix subscriber, and you wish to exit Netflix, you are advised to plan ahead. The biggest pitfalls to avoid when canceling your Netflix subscription are getting charged for extra months and getting charged for DVDs Netflix may claim were never returned or returned after the due date.  To minimize these possibilities, consult the cancellation procedure outlined at "Canceling Your Netflix Subscription."

If you put your Exit Netflix plan into place and properly end your Netflix subscription during the next several weeks, you can avoid the price hike and apply the money in your entertainment budget toward better values.

If you would like to help your fellow Netflix Underground readers by recommending some alternatives to Netflix and providing some other Exit Netflix tips, please click on comments below and post your suggestions.

9/07/2005

Canceling Your Netflix Subscription

The two happiest days of your Netflix membership are the day you begin your subscription and the day you end your subscription. There is an ugly and unexpected twist to this, however. A surprising number of former Netflix subscribers have reported that after they canceled their memberships, Netflix denied receiving their final DVD returns.

When Netflix denies receiving a returned DVD from a customer who has recently canceled, Netflix charges the former customer’s credit card for that DVD. This practice exposes the former customer to dozens of dollars in additional charges after their subscription has ended. Unfortunately, the former customer is left holding the bag and has the burden of proving that the “missing” DVDs were actually returned.

If you want to cancel your Netflix subscription and minimize your exposure to additional charges, consider following the steps below.
  1. Determine your billing date by viewing your account information on Netflix’s Web site. Since Netflix cancellations are immediate and Netflix does not give refunds for partial months, you should plan to cancel shortly before your next billing date.
  2. Several days before you cancel your Netflix subscription, delete every DVD from your queue. This should prevent Netflix from shipping more DVDs to you.
  3. Send all of your DVDs back to Netflix. (Consider taking the extra precaution of sending these DVDs certified mail. Include a brief letter detailing the exact contents of the envelope. Keep copies of all documentation.)
  4. As Netflix notifies you of receipt of returned DVDs, save the notification emails in case you need them later for proof.
  5. The day you intend to cancel your subscription, check your account to see which DVDs have not been checked in by Netflix. Report any outstanding DVDs as lost. This should completely clear your queue.
  6. Send an email to Netflix informing them that you are canceling your membership. This will create more of a paper trail. (Note: Do not tell Netflix that you are canceling because you were not getting enough DVDs. Netflix loves when heavy users cancel.)
  7. Cancel your subscription using the Netflix Web site. Make sure to follow the on-screen instructions carefully.
  8. Sit back in your chair, grin, and enjoy a beverage of your choice as you celebrate the end of the dysfunctional relationship you had with that company.
The main drawback to this cancellation procedure is that you will loose about a week’s worth of DVD rentals. Unfortunately, if you want to minimize the chances of getting hit with extra charges from Netflix after you cancel, you have very few options.

After you have canceled, carefully check your credit card statements. If Netflix still charges your credit card for missing DVDs (or any other unjustified charges), immediately contact Netflix via email to dispute the problem. If Netflix does not fully credit the unjustified charges to your credit card, contact your credit card company and dispute the charges. In many circumstances, your credit card company will reverse the charges.