Netflix Shortened Gift Subscriptions After Hiking Prices

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Apparently Netflix is readjusting the length of gift subscriptions based on its new pricing plan. Have any of you ran into this? It might be a good time to check.

They figured that they didn't have to worry about canceling or changing their subscription until early 2012, though, because they had received a one-year subscription as a gift. Twelve prepaid months is twelve prepaid months, right? Nope. From Netflix's point of view, the gift giver didnt a fixed number of months for the couple—he prepaid a certain amount of money, and the length of their subscription was readjusted once the price went up.
 
your link is broken (has an extra H)

and this is ridiculous i would be pretty upset as a gift giver to have to tell the people you gave it to "hey i said enjoy the next year of netflix but i really ment enjoy the rest of the week"
 
Wow, netflix just keeps on coming up with dickhead moves that are pissing people off. I didn't give the gift of netflix so i'm not worried, but still, this has been a bad two months for netflix PR
 
Well it all depends how they clearly advertised the Gift.

If they said "1 year subscription" for $xxx, then yeah they should not be adjusting the gift plans.

If they said "$xxx gift, worth 1 year of service", then they have the right to.
 
yeah, or would be upset if someone told me... after paying 6 months and agreeing to original terms: "oh yah btw, that year subscription is increasing in price so pay up if you want continued service"
 
That seems like a shitty move on Netflix's part. Regardless of the wording of the initial terms, if the expectation was for X amount of time, standard behavior is to honor that on a limited contract.

I would have to think this is a class action suit waiting to happen.
 
Yeah. Even if their wording allows them to do this without any legal repercussions it is a dick move that won't make for happy customers. They've really got to work on their customer relations.
 
Ok I just looked on my account... Yes I can confirm Netflix are being douches...

<table style="width:auto;"><tr><td><a href="https://picasaweb.google.com/lh/photo/YCL8Fsvb0cVdwGSl3IVvDA?feat=embedwebsite"><img src="https://lh6.googleusercontent.com/-Y1npV_3REFo/Tk6DfHHLRqI/AAAAAAAAAFQ/K-r2EE1zPdc/s144/Netflix_Gift.jpg" height="95" width="144" /></a></td></tr><tr><td style="font-family:arial,sans-serif; font-size:11px; text-align:right">From <a href="https://picasaweb.google.com/109060316334577516240/Netflix?authuser=0&feat=embedwebsite">Netflix</a></td></tr></table>

Code:
Gift Subscription Terms
Gift Subscriptions are pre-paid membership to the Netflix service redeemable at www.netflix.com/gift. A person who receives and redeems a Gift Subscription to the Netflix Service is referred to in these terms as the "Recipient."
There are no refunds or other credit for Gift Subscriptions which are not redeemed.
Gift Subscriptions do not include access to Blu-ray. A Gift Subscription may be exchanged to add Blu-ray access and/or select another plan. Exchanges in this manner, however, will likely alter the duration of the Gift Subscription. If such an exchange to the Gift Subscription is made, any partial periods of the Gift Subscription will be applied as a partial reduction to the next month's membership payment ("Discount Period").
A valid payment method is required to redeem the Gift Subscription and Recipient authorizes Netflix, in accordance with the Terms of Use, to charge Recipient's payment method for any disc not returned after cancellation of the Netflix membership.
Recipient's payment method will be authorized for a nominal amount each month during the Gift Subscription to verify that a valid payment method is on file. In some instances, Recipient's available balance or credit limit may reflect this authorization; however, no charges will be made against the payment method unless Recipient does not cancel prior to the end of the Gift Subscription, fails to return a movie upon cancellation of the Netflix membership, or in connection with any Discount Period.
At the end of the Gift Subscription, Recipient authorizes Netflix to automatically renew the membership and bill Recipient's payment method monthly for membership fees and applicable tax unless Recipient cancels prior to the end of the Gift Subscription. Recipient further authorizes Netflix to charge Recipient's payment method each month for the membership fees plus applicable tax until Recipient cancels the Netflix membership. Although the membership is cancelable at anytime, there is no refund or credit for partially used periods.
Recipient can click on the "Your Account" link for cancellation instructions. As a convenience, Netflix will notify Recipient two (2) weeks prior to charging Recipient's payment method and/or beginning automatic monthly subscription billing. It is Recipient's responsibility to cancel the Gift Subscription if Recipient does not wish to continue the Netflix membership past the end of the Gift Subscription.
Netflix is not responsible if the Gift Subscription is lost, stolen or used without permission.
Gift Subscriptions are not redeemable or refundable for cash, subject to applicable law, and cannot be resold or combined with any other special or free offers, including other Gift Subscriptions and Gift Cards.
Gift Subscriptions are issued by NGS Services, LLC, an Oregon limited liability company. Gift Subscriptions purchased at www.netflix.com are valid for redemption only at www.netflix.com.
Gift Subscriptions and their use are subject to these terms and the Netflix Terms of Use. These Gift Subscription terms are governed by the laws of the State of Oregon, but excluding their conflict of law principles, and are subject to change without notice. Gift Subscriptions issued prior to August 20, 2010 are subject to the terms found here.

So both their advertising and terms at the bottom lead people to believe they are buying Subscription lengths rather then dollar amount.

The only time they allude to dollar amount is if the gift is converted to include Blu-rays.
 
That is an extremely poor PR move by netflix no matter how they try to spin it.
 
I think though you would be hard pressed to write a legal document saying, "You are purchasing up front a 1 year contract for X service. Unless we decide to shorten it." And even if it was written that way, it doesn't make it enforceable.

I'm betting that Netflix backpedals on this one fairly quickly.
 
Ah, Dandirk actually posted up the terms. So Netflix specifically sells this as an allotment of time, not a balance of $. You paid up front for X months, which is then non-refundable for that time period. WTF Netflix, wtf.
 
If this is a across the board accurate case for all gift recipients (and not an isolated case) the following applies:

If I was them I would tell them to fuck off and cancel the service. If I was the Brother who gave the gift I would tell them to fuck off, cancel the subscription, and dispute the charges for the gift given.

This is beyond bad business and PR. This is just Netflix being assholes.
 
Honestly I think it is how they sell the gifts.... They clearly are selling by the month... not like a gift card per se, where everyone knows there is a pool of $$$.

You know if they would sell it... $50 gift which is good for x months streaming, y months streaming with DVDs etc etc

This probably wouldn't be a big deal.
 
If this is a across the board accurate case for all gift recipients (and not an isolated case) the following applies:

If I was them I would tell them to fuck off and cancel the service. If I was the Brother who gave the gift I would tell them to fuck off, cancel the subscription, and dispute the charges for the gift given.

This is beyond bad business and PR. This is just Netflix being assholes.

lol you should read the terms... no refunds, cancel and poof money is gone.
 
lol you should read the terms... no refunds, cancel and poof money is gone.

Cancel the service meaning don't continue it after the gift period, and refuse to pay the difference billed to them for a "next paid period." The terms changed without warning . Clauses in contracts that allow sudden changes without a way to back out of for customers who do not want them should be illegal. It is becoming a serious fucking issue with companies screwing customers out of more and more lately. Where is the customer protection here?
 
Netflix boardroom:

Sales Guy: Our numbers are up, people love the service, and we're quickly becoming a household name!

Nameless Suit: This is terrible news, DOUBLE prices immediately! Cut costs at every conceivable opportunity! If these customers don't resent us and secretly hate us then we are not a successful business!
 
I'm betting that Netflix backpedals on this one fairly quickly.

Agreed.

The gift certificate refers to a set time period (i.e. 1 year), so they are going to run into legal problems.

If it was just sold as a $100 gift card, with no specific time period stated, then they would be legally ok.

I already put my account on hold, and plan on canceling it before the end of the month.
 
Netflix is obviously sipping the same Koolaid the MPAA is now... For shame... I had such high hopes for them...
 
I have a netflix gift card, and on the front it clearly states these:

[pre]
3 Months $26.97

NETFLIX
3 Month Gift Card.

Movies delivered 2 ways
Instantly watch TV episodes & movies streaming to your TV
Plus, DVDs by Mail
[/pre]

On the back, it says it is valid for 3 months of Netflix on the 1 DVD out-at-a-time (Unlimited) plan.

I think it's more than clear what their obligations are and the price of the gift doesn't affect their obligations.
 
Now that is some real bullshit. I bought a friend a gift sub last year, they were clearly sold as "1 month", "12 months" etc. I'll have to warn them to check their account status.
WTF are they thinking at Netflix? They've managed to go from the media service everyone loved, to just another bunch of money-grubbing dicks in a matter of months.
 
If they're sold as length of time, this will result in a class action lawsuit.
 
I didn't see this coming, but it's starting to surprise me less and less. I'm glad this will be my last month with them.
 
This doesn't appear to make any business sense whatsoever. They'll get nothing but bad press for this (like they need any more of that lately) and for what? What percentage of their revenue actually comes from gift subs? Why shoot yourself in the foot for a few extra bucks? And do you honestly think after pulling this, that the person receiving the gift will want to continue the service?

C'mon Netflix, I understand that you are a for-profit entity, but a little generosity could go a long way...
 
This is basically what happens when a monopoly happens.Granted.. Netflix is not really a monopoly, but as big as they are compared to the rest, it's close enough.

As it is, it shuold not be retroactive (is that the right word?) unless they want to be sued for it, as i would think it's a contract being changed somewhere.
 
Given all that is going on, did Netflix recently have a CEO change or a board of directors turn over or something? What is prompting all this anti-consumer pro-money actions lately?
 
I did not have a big problem with the price hike (though I am close to running out of half-way decent movies to watch on their very-limited streaming selection - therefore, i am close to cancelling regardless of the price) - but this is outrageous. If I had bought or received one of these cards, I would cancel.
 
I did not have a big problem with the price hike (though I am close to running out of half-way decent movies to watch on their very-limited streaming selection - therefore, i am close to cancelling regardless of the price) - but this is outrageous. If I had bought or received one of these cards, I would cancel.


Yeah, this isn't right.

Gift card terms state: 'Gift Subscriptions are not redeemable or refundable for cash, subject to applicable law, and cannot be resold or combined with any other special or free offers.'

In other words they are NOT a store of cash value. Several states require any store of cash value be redeemable back into cash. They are a specific time period, when you buy one to give to somebody it even makes you choose in terms of 1 month, 2 months, 3 months, 6 months, or 12 months. You can't just give a $25 value Netflix gift card to somebody.

Just imagine if back when Microsoft increased the cost of Xbox Live they automatically made all those 12 month cards only 10 months instead. The gaming community would be bringing it up 10 years from now as an example of greed.
 
I'm liking Netflix less and less. Thinking less about the customers and more about the pocket book have got many companies in trouble. Not a good business model. Would amuse me to no end if Netflix took a big kick in the pants financially because of their stupid decisions.
 
even though this doesn't affect me personally all I can say is wow netflix thats really fucking weak... also I smell a class action suit in the making.
 
I can live with the cost changes, especially if it yields improvements in service, greatly expanding the catalog, etc. But this is crossing the line, and I hope they pay big for it. Never purchased a gift card for Netflix, but I'm not sure I want to continue doing business with a company who treats their customers like this...
 
Sounds illegal to me. If it says 12 months on card then you should get 12 months. The Lawyers are going to have a hay-day with this :p
 
Man! I have been a Netflix subscriber since they opened their doors, and I have to say, their recent decisions are really making it difficult to like them.
 
What did people expect? There's no honor among thieves or corporations. Once people abandoned the competition like Blockbuster and other video rental chains and they folded,the path was clear for Netflix to stick it to their customers. Ultimately,greed usually wins out over loyalty to the customers.
 
Its funny in less then a year or maybe about a year they go from a company people love to a company people do not like anymore...
 
huh..

didn't know comcast was holding business workshops :D

seriously, for a company that spent years on the up and with mostly glowing reviews (been using them for probably around 6 years now), they are shitting it away incredibly fast. I mean, i understand that to some degree its the movie companies being huge assholes as well...but you would think a smarter move would be to rally the consumer behind them and away from the movie company...instead of just shitting all over their customer base...
 
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