Faulty management and inconsistent pricing by Netflix Inc. are persuading some students and faculty to find alternatives to the previously booming DVD-by-mail and Internet-streaming service.

Netflix announced Monday it would reverse its decision to split DVD-by-mail and Internet-streaming services; however, it is not backtracking on its 60-percent price hike for monthly services.

The company now faces heated backlash from once-loyal subscribers who are choosing more affordable rental alternatives.

Accounting junior Michelle Tarkington said she never would subscribe to Netflix because of its monthly service charge. Tarkington said there are more inexpensive ways to watch newly released DVDs.

“I prefer to use the Redbox kiosks because you can find them by nearly every grocery store, McDonalds and CVS store,” Tarkington said. “It allows you to access the titles you want instantly without having to pay a monthly fee for films I don’t ever get around to watching.”

Netflix became the hot spot for consumers to obtain high-demand media products during the decline of physical video rental businesses such as Blockbuster and Hollywood Video, both of which filed for bankruptcy.

Netflix’s direct competitors — Redbox, Hulu, Amazon and Google — have not been able to match its success in regular users.

According to the Netflix website, the company is still the world’s leading Internet subscription service, with 25 million members in the United States and Canada.

But due to recent initiatives, like the failed attempt to create the separate DVD-by-mail company, Qwikster, some are hesitant about the service’s future.

Networks such as Starz have decided not to renew their contract with Netflix, limiting the selection of titles for consumers.

Netflix recently indicated that it expected to lose a net 600,000 members because of the price increase, which would serve as the lowest downturn in the company’s history. This projection was off considerably, with the actual figure reaching 1 million subscribers who have deleted their accounts, according to a Netflix note to investors.

Many of Netflix’s hindrances also are reflected in their plummeting stock numbers, which have abruptly declined over the last three months.

According to The Washington Post, Netflix’s saw its stock hit a 52-week low in trading following July’s increase of monthly service fees. The company stock experienced an all-time high of $300 a share just days before it announced the price hike, and since the switch, prices have steadily declined, currently residing at $140 a share.

OU film professor Sunrise Tippeconnic said some modifications may prove beneficial for Netflix’s trailing competitors. According to Business Week Magazine, Netflix share decline is making it a cheaper target for a possible takeover by companies such as Google Inc. and Amazon.com Inc.

Tippeconnic said Netflix’s previous attempt to build its DVD-by-mail service with Qwikster was a lost cause because streaming video is the future.

“The DVD-by-mail service has become an archaic method for obtaining media products. This explains the concentrated appeal of streaming videos. I think Netflix’s decision to divide the services will contribute to the company’s demise,” Tippeconnic said.

Once companies like Blockbuster got wind of Netflix’s rivaling business strategies, they mimicked its practices, providing customers with three different services options, Tippeconnic said. The reason these businesses went under was their lack of convenience and affordability, and Netflix’s recent price increase will likely restore subscribers’ interests in alternative options, Tippeconnic said.

“I am not a subscriber of Netflix because I like to experience different avenues, explore more independent options such as Roku.com. The more variety of services I experience, the better the selections I encounter,” Tippeconnic said.

Multidisciplinary studies senior Lauren Poe said Netflix is a product of our fast paced society’s craving for instant satisfaction. Poe said Netflix has been the best thing to happen to home entertainment in several decades.

“The key to Netflix’s success was the convenience. It gives consumers immediate access to their favorite titles, even obscure indie films, from the comfort of their own homes,” Poe said. “Hopefully the company is resilient enough to withstand its questionable business strategies.”

Netflix Inc. stock shares

$300 per share days before the Netflix price hike.

$140 per share now after Netflix price hike.

Source: The Washington Post