Hey Vudunauts–

I hear that things aren’t going so well for you specifically, and you’ve even gone so far as to lay off just over fifteen percent of your entire staff, most of whom have probably gone on to get jobs with Netflix or Blockbuster.com, both of which are going great guns.

Now, your entire industry has lots of problems, many of which I’ve already discussed including low access to broadband internet, poor broadband speeds, and suchlike.  But there’s one problem that you guys could definitely be working on, and if you want those people back and some cash flow coming in, well, I’ve got an idea for you.

One word: value.

First, you’ve got a serious handicap to entry on your hands.  Your prices are EXTORTIONATE.  No, seriously–three hundred bucks for a set-top box before I can even ACCESS the service?  That’s insane!  In an era when everybody’s counting their pennies and looking for the lowest-cost alternative to pretty much everything under the sun, you’re charging the equivalent of nearly two years of Netflix service (depending on the plan) just to even start using.  And then, once you’re in, the charges only get more egregious.  Ignoring for a second your truly pitiful “dollar menu” (ninety nine movies for ninety nine cents.  wow, can you afford it? At least you’ve got Sweeney Todd on the list and that’s kind of a new release.) I go in to rent a movie from you for four bucks a pop.  Even with gas at four bucks a gallon, it’s actually CHEAPER for me to drag myself from the depths of my tech-laden man cave and drive to the corner video store, where they will charge me ten bucks to rent six movies for a whole week.

Why would I EVER pay your ridiculous prices?

Well, there’s one reason, and that reason may well be your biggest problem.  I might well pay these kinds of extortionate prices…IF…you had movies that I couldn’t get anywhere else.  And there’s your problem.  You’re charging premium prices to rent stuff that any idiot could get at the corner video store.  You’re emphasizing convenience over value and that’s why you’re hemorraging cash.

If you want any kind of hope for a recovery, pray for one of two events to occur:  1. Suddenly people value time over money, or, 2. You actually take my advice on this one.

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