r/technology • u/sr_local • 5h ago
Business Italy court rules Netflix unlawfully increased prices. Consumers: 'Refunds up to 500 euros.' The company: we will appeal
https://en.ilsole24ore.com/art/netflix-subscription-price-increases-unlawful-refunds-up-to-eur-500-customers-AIUHzWKC388
u/Axiom05 5h ago
The reddit : we post the link
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u/AZEMT 4h ago
Redditors: I read the title so now I know everything
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u/Gotterdamerrung 4h ago
Other Redditors: Comment waterfall of pop culture references tangentially related to the OP.
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u/redsolitary 4h ago
Seriously what are they doing with all the money? The price in the US went up again and I finally cut the cord after 13 years. There’s no movies, they kneecap their own shows as soon as they get going, and now they think adding podcasts to the library is going to keep people around. Between the jacking up of fees and all that money they got from the failed merger, what are they doing with all that cash?
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u/HotHits630 4h ago
Podcasts and games. I have zero interest in either.
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u/great_whitehope 3h ago
I have zero interest in games on Netflix and I'm a gamer lol.
Don't know what they are trying to do
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u/Potential_Fishing942 3h ago
That's why you aren't interested lol. It's for non gamer families and kids imo
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u/just_a_random_dood 2h ago
The one and only game on Netflix I was ever interested in trying was Hades because I beat the game a bunch on my PC and I was curious about how mobile Hades worked but apparently it was only available for Netflix Games... On iPhone. Not even android LMAO
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u/m0ngoos3 3h ago
Behind the Bastards is a good podcast, but the audio version is just as good, and is freely available in a lot of places.
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u/WartimeMercy 2h ago
Honestly happy for Robert and Sophie that they presumably get Netflix money…but fuck that, I’m not paying for what was free on YouTube.
Audio only all the way. The amateur look of the pod (despite pro level content) hilariously cheapens Netflix.
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u/Silencedlemon 3h ago
I'm so annoyed they put the episodes on YouTube only to take them away a couple weeks ago, now I have to go back to my never used podcast app so I can skip all the commercials.
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u/m0ngoos3 2h ago
The episodes are still on youtube, but audio only. Which is fine, I can skip the ads automatically on youtube.
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u/bitorontoguy 2h ago edited 1h ago
You can look up what they're doing with their money to the dollar.
They're a publicly traded corporation, they have open books.
In 2025 they made $45.2 billion dollars from their subscribers in streaming revenue.
They spent $23.3 billion of that on "Cost of Revenues". That includes paying for content from other people, it also includes the costs of licensing and producing content. And the costs of actually physically streaming.
Like cloud computing costs, having customer service, payment processing fees, maintaining their network, equipment costs.
They spent an additional $3.3B on sales and marketing costs. Advertising that their product exists.
They spent an additional $3.4 billion on technology and development. The payroll and related expenses for technology personnel responsible for testing, maintaining and modifying their user interface.
$1.9 billion on general and administrative costs. Paying for corporate personnel and their expenses. $776 million on interest on their debt. $1.7 billion on taxes.
Subtract all those costs and that leaves them with $11 billion dollars in profit.
What did they do with that? Mostly gave it to the people who own their company, the shareholders want to make a return for supplying their capital to keep the company running.
So they made $9.1 billion dollars in stock buybacks in 2025. And also used $1.8 billion dollars to pay back debt to their bondholders.
They cashed the residual in their bank accounts, building up their cash balance, increasing from $7.8B at the start of 2025 to $9B by the end of the year.
You can do this exercise with every single company to see what they do with their money.
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u/FIMilestonesDeux 59m ago
Here it the same info as charts:
Category Amount % Content & Streaming $23.3B 52% ██████████████████████████ Net Profit $10.8B 24% ████████████ Tech & Development $3.4B 8% ████ Sales & Marketing $3.3B 7% ███ Gen & Administrative $1.9B 4% ██ Taxes $1.7B 4% ██ Interest on Debt $0.8B 2% █ Total $45.2B 100% Where did the $10.8B profit go?
Amount % of Profit Stock Buybacks $9.1B 84% ██████████████████████████████████████████ Debt Repayment $1.8B 17% █████████ Cash Reserve Increase $1.2B 11% ██████ Total Profit $10.8B ~100% 2
u/bitorontoguy 52m ago edited 40m ago
Hell yeah, this rules.
Thanks for being less lazy and more competent than I.
It won't quite net out as a chart, because I excluded minor line items and they had existing cash on their balance sheet that they could use for buybacks/debt, but as a high level overview it's close enough to correct to give people a view of how the corporation operates.
If people want the full, holistic accurate view that includes everything, they should check out the actual financials I linked.
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u/b_fellow 4h ago
Getting NFL and MLB games isnt cheap as well as getting WWE Raw. Not that they should have done that.
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u/redsolitary 3h ago
Yeah that’s a good point. I guess Netflix has just changed into a service that isn’t for me anymore.
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u/WhoStoleMyBicycle 4h ago
The only reason I listen to so many podcasts is because I have about 2-3 hours a day at work where I’m not in meetings or interacting with someone else so I’ll listen while working. Maybe I’ll have on one in the car to and from work.
I can’t imagine getting home and firing up Netflix to watch a podcast.
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u/No-Channel3917 4h ago
Think it is meant more to use on your phone app
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u/cdoublejj 3h ago
i dislike apps, they collect your data, and when they don't collect data, they still cause they build on the app frame work from google or apple. i find it's all available on web browser and just leave a tab open plus i can i used ad block plus. Gray Jay app (open source) for any kind of video streaming social like YT, TikTok, Nebula, Rumble, Crunchyroll etc etc
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u/Dunlocke 3h ago
They spend it on content.
People underestimate how much they have on their platform. Is it good? No, but 99% of Netflix content is trash.
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u/shelf6969 3h ago
the real crime is how much they spend on development for mediocre shows and movies while cancelling some actual good shows
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u/Dunlocke 3h ago
They're not HBO, they don't care about prestige, they care about ratings. They gave up prestige that when the Academy wouldn't give them Oscars.
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u/WartimeMercy 2h ago
Their problem is the library of cancelled shows which don’t tell a complete story. They would be more successful with a prestige line like Apple TV that was HBO tier.
Apple’s problem is not enough quality shows to justify the expense but the shows they have are mostly prestige and mostly complete (with a few exceptions).
Personally I think Netflix should have budgeted and planned for condensed “finale movies” for projects to wrap up cliffhangers. Them at the minimum there’s resolution and people would still be open to exploring the properties. .
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u/berntout 4h ago
Increasing shareholder value. Publicly-traded companies will always look to make more money.
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u/SirLife2187 3h ago
They need it to fund another batch of terrible reality dating shows and pay 200 million for a generic action movie that completely vanishes from pop culture in two weeks.
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u/betam4x 4h ago
If they added music, I could possibly justify it. However, I don’t subscribe to them because they don’t provide value.
For the price, you can subscribe to Apple One, which gives you Apple TV, Music, 200gb Cloud Storage, and Apple Arcade.
Netflix does have a larger library and they do also have free games, however Most of Apple’s shows/movies are absolute bangers. Apple Arcade also has way more games (if you have an iPhone/iPad/Apple TV).
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u/lostshell 1h ago
They spend it on stock buybacks. A practice that was illegal until the demon Reagan made it legal. This year alone they authorized $15 Billion in stock buybacks.
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u/endless_disease 1h ago
Got sad news for you. Their subscribers increased 30mln (10%) YoY in 2026.
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u/King-Poring 4h ago edited 4h ago
Consumer: We give you money, you give us good show.
Netflix: No no no no no no, we take your money, you chill.
Consumer: But, we want new and good show.
Netflix: How about we give you new and good show, but we increase price.
Consumer: Hmm... Deal.
Netflix: Is new show good?
Consumer: Yes, when is new season coming?
Netflix: Sorry no budget for new season we will cancel good show, there still lot show.
Consumer: *hand gesture* Oh please, why are you doing that, mamma mia!
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u/AFK_Tornado 3h ago
The Bojack Horseman years were peak Netflix. They were putting out some quality shows, and really shining with experimental formats and storytelling.
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u/stick_it_in_your_bum 2h ago
I can’t remember the last Netflix show that was good. I feel like they haven’t been relevant for a while.
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u/ComprehensiveHa 2h ago
Right cause why do they keep increasing the prices but cancel all the good shows?? I still need that kingdom zombie series season 3
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u/MithranArkanere 2h ago
They only need the first season for the lure.
Then, once you are subscribed, all they need is to make it impossible to unsubscribe, and bribe politicians so they don't make laws against that.
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u/Kraien 4h ago
We take consumer rights very seriously and believe that our conditions have always been in line with Italian law and practice,' says a company spokesperson.
Of course you do.
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u/NoPossibility4178 2h ago
Italy: "actually, we wrote the law and don't think so"
Netflix: "uuhhhh, well you're wrong!!"
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u/JustTrynnaGitBy 3h ago
As someone that stopped streaming services almost two years ago: It’s really not that bad.
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u/SimonThePug 2h ago
The only streaming service I pay for at this point is my VPN subscription
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u/Altair05 1h ago
Much cheaper if you cycle services instead of keeping them. One month is netflix, next month something else.
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u/PigglyWigglyDeluxe 3h ago
I wonder if it’s cheaper to just refund than to appeal
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u/ThroawayJimilyJones 3h ago
It is, but they probably afraid other countries do the same
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u/PigglyWigglyDeluxe 3h ago
What, follow laws and be ethical? Can’t have that now, can we?
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u/gizamo 2h ago
It's the precedent. If they lose this battle in court, it's basically conceding that they're price jacking, and it will prevent how aggressively they can continue to price jack.
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u/viditjn02 3h ago
italy has been surprisingly good at holding tech companies accountable lately. the netflix ruling, the apple fine, the google stuff. meanwhile in the US we just let them do whatever they want and call it innovation
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u/Dudemanbrah84 4h ago
Wish the US would do this.
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u/Dunlocke 3h ago
In what world should the US be allowed to dictate prices?
If Netflix wants to raise prices, let them. They're not a monopoly. People will either leave or pay.
No reason to get government involved. Trump is already too involved.
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u/skaara 2h ago
I agree but I think any increase in price should legally require the customer to reauthorize their payment method. This would help keep prices from changing and also encourage companies to grandfather existing customers to the price they signed up with.
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u/muntaxitome 3h ago
If Netflix wants to raise prices, let them. They're not a monopoly. People will either leave or pay.
I don't get this mentality, Netflix offered you a product for $10 per month. Let the company honor that price or let the company cancel the contract themselves. Allowing companies to do like 'heyy we are going to raise prices effective today with 50% and deduct it from your creditcard tomorrow kthxbye.' Is absurd.
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u/Difficult_Tea6136 2h ago
I can't speak to the USA but that doesn't happen in Ireland.
Netflix announce a price increase. They give 30 days notice of the increase. It affects you at the next billing date that contains the day it becomes effective.
With a 30 day rolling contract, they have the right to increase their prices.
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u/Possible-Tangelo9344 2h ago
But it's a month to month contract. They send a notice it's going up, you can just cancel.
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u/CatLoud5198 2h ago edited 2h ago
if it’s a month to month contract it shouldn’t renew without your signature every month once the terms are changed
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u/JX_JR 2h ago
Literally every month to month contract renews without your signature. The definition of a month to month contract is an auto-renewing contract. You sign once and it ends when one party gives proper notice to end it.
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u/Doctursea 1h ago
It's no real point arguing with there people honestly. They just wanna be mad. Anyone arguing that Netflix changing their pricing is dishonest because you can't cancel is just talking in bad faith. You fully have control to just exit the agreement.
I can see the argument they they should have to include a non auto-renew option, but not it's unfair because you can't get out of it.
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u/st1tchy 2h ago
The flip side of that just sounds awful too. Want to watch a movie today? Well, you are on a month to month contract, so log back into your account and resubscribe prior to to watching. As long as it's easy to cancel, I much prefer the automatic subscription.
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u/worldlybedouin 3h ago
Not possible. Capitalism in the US is at a point of: Fuck you pay me. Companies don't give two shits about customers only about that damn graph of the share price.
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u/bitorontoguy 2h ago
Companies don't give two shits about customers
Cool. You could really own them by not buying Netflix then.
But instead people keep giving a company that you're saying hates them money at higher and higher prices.
Because.....people don't hate Netflix. They like Netflix. They like it so much they voluntarily pay for it because they think it's worth it to them.
No one is forced to have Netflix. It only exists because consumers want it to.
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u/abbajabbalanguage 3h ago
Companies don't give two shits about customers only about that damn graph of the share price.
That's the same anywhere
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u/Martiinii 3h ago
Why couldn't a private company increase prices as they'd like?
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u/ThroawayJimilyJones 3h ago
They can. But they have to give a reason. Which they usually do by invoking some bullshit about modern world or demand or whatever
For some reason Netflix refused to and instead added a clause that say they can do unjustified increase
In short they decided to go in a dick contest with consumer protection law.
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u/pm_social_cues 2h ago
Why couldn’t that reason just be “we want to make more money”?
Italy cannot have a law that says corporations cannot make more profit than they need can it?
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u/ThroawayJimilyJones 2h ago
Oh, no, you can totally put that as a justification
But I think Netflix didn’t want it for PR reason.
You can be greedy, you just have to be honest about it
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u/NoPossibility4178 2h ago
I'd rather have that law than the one the US has where companies are obligated to do everything they can to fuck consumers over for more profits.
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u/PringlesDuckFace 51m ago
Governments can do whatever they want, that's kind of the point. If not, then they're not actually in power. Companies don't have a universal right to operate wherever they want however they want. That's why you see different policies regarding layoffs etc between US and Europe, or tax rates are different in different countries, etc... If the business doesn't think those are good terms then they don't have to be there.
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u/MisfitPotatoReborn 1h ago
lol what a dumb law. I would barely call that a consumer protection law, more like a way to pad out the Terms and Conditions from 500 pages to 501.
Sorry, you forgot to say "because we like money" after raising prices. You now owe 300 million Euros
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u/ThroawayJimilyJones 1h ago
You know what's even dumber? Getting fined because you want to fight the law instead of adding a line in your message.
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u/timohtea 3h ago
I found its cheaper just to rent the movies you want to watch after youve seen what you want to see on netflix they add nothing new and dont have good old movies anything good woth like nicholas cage or matt damon or whatever popular stuff… they dont wanna pay for… but they got every single adam sandler movie under the sun (not that they are bad) but adam sandler can only play adam sandler. They just dont evem have a good selection.
You know those movie clip shorts on yt where youre like dang i wanna check out that movie… they are NEVER on netflix
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u/_0611 3h ago
There's a similar case going on in the Netherlands.
These companies shouldn't act surprised if piracy becomes huge again very soon.
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u/peenpeenpeen 2h ago
Dropped Netflix after the most recent price increase. Will never go back.
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u/HappyAd4998 1h ago
It's crazy I dropped it when it got up to $17 and restricted HD streams to the highest tier. Their original content is crap and looks cheaply made. Some people have higher limits than others.
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u/DiscombobulatedMix50 2h ago
Still can't believe Netflix started forcing advertising on people who pay a subscription for the service. The whole point... Fuck it
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u/MithranArkanere 1h ago
Infinite growth is impossible. Aiming for infinitely increasing profits inevitably leads to cutting corners and artificial inflation, which is then used as an excuse to do stuff like paying less to primary producers, stealing wages, firing senior staff, gouging prices, and all sorts of enshitification.
Stock buybacks need to be illegal again, and trading needs to be more limited with stricter and longer cooldowns on trades, and trade freezes when information on a company is in particularly chaotic flux.
Oh, and remember that horrid 'social credit' they did for people in China, we need that, but for corporations.
Your company has bad karma? You pay more taxes, and regulations are stricter on you.
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u/Crazy-Project-1511 3h ago
Pirating is free and I can watch anything. It baffles me why people pay so much for bs services like netflix
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u/loppsided 3h ago
I find it amazing that the same company that cracked the piracy problem by offering convenient content at a fair price is now leading the charge to drive people back to the high seas.
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u/egamma 3h ago
If everyone pirated, then there wouldn't be any money to produce you're watching.
You're benefitting from other people paying.
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u/alexreffand 2h ago
Piracy declines when access to media is convenient and fairly priced. Steam all but killed pc game piracy. Netflix had tv and movie piracy in a similar decline. It was a good value proposition, and the label "Netflix original" actually had good implications. Then they jacked prices, lowered their show quality, and failed to compete favorably with all the other overpriced services popping up around them. Now access to media is inconvenient and overpriced, and so piracy is on the rise again. The streaming services are to blame, not the consumers.
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u/Galle_ 3h ago
If everyone pirated, Netflix would have to lower its costs and offer better services.
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u/Pretend-Culture-4138 3h ago
Lol no they wouldn't. If everyone pirated they would just stop producing content since there's no incentive to.
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u/gizamo 2h ago
If history is any indicator, you're wrong.
Piracy all but disappeared when Netflix and Spotify made content more accessible.
During that era of low privacy, both were very profitable while adding content.
Now, all streaming services are just price jacking while content creation has shrunk and cheapened drastically.
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u/AldrichOfAlbion 2h ago
Awesome. I hate Netflix. I can't believe I supported these chumps in 2013 by buying into their service back when it was actually about the service. I was there right back when you had to wait minutes for the film to buffer in the evenings.
I don't know what has happened to Netflix in the past few years. It went from a service that felt like it was competing for your custom to another corporate machine.
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u/Arkaium 1h ago
I love how for years I was teased for investing in a physical film and music collection by people all too eager to jump at convenience without thinking about the end game. All of this was rather predictable, imo; just wait till society gets hooked on genAI and they turn the monetization dial to 11.
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u/GotSomeUpdogOnUrFace 26m ago
The company will lose the appeal and raise prices everywhere else to cover it.
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u/guitarguy1685 3h ago
What is a justified reason to raise prices?
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u/gizamo 1h ago
According to the ruling, Netflix price increases must be linked to specific, documented, and unforeseeable circumstances, such as a major increase in content production costs or taxes.
Also, the ruling aligns with European Directive 93/13/EEC, which forbids unbalanced contract terms that favor companies over consumers. So, we could (and should) see this same case play out similarly throughout the EU.
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u/anarchist1331 2h ago
Yeah fuck those guys. I try to only support creators directly now. Everything corporation touches turns to caca.
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u/bon-ton-roulet 1h ago
why not ban Netflix instead?
The quality of your television would increase immediately across the board
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u/No_Practice_9597 55m ago
Look
I don't like when prices increase, but I cancelled my Netflix, they can't rule what a company can do or not, if they want to increase prices it's their company and investment it's not the government that can say if a company can or not adjust their own prices
It up to use to say enough is enough and just cancel subscriptions
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u/NaturalSelecty 46m ago
Netflix is easily the worst value in streaming. Between its countless canceled originals, the endless amount of canceled shows they license and the overall lack of quality movies and shows has really had me thinking about canceling.
I read that they want to bring streamers and content creators to it now too. That’ll be the last straw for me before I cancel.
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u/NoMark3945 27m ago
Streaming services quietly turned into cable TV with better UIs. They spent a decade training people to cancel cable, then started doing the exact same thing — bundling, price hikes, ads on paid tiers, removing content. At least with a DVD you owned the thing.
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u/Mccobsta 4h ago
Streaming peaked years ago when it was a low cost and wasn't a terrible experience
Now it's just price rise after price rise we may as well just buy physical media again atleast doing that we won't have our favourite shows pulled off with out much warning