(1) Raising the price of your streaming service because Hollywood is ratcheting up the licensing fees for their content by 1,000% (or more) is just the sad reality of doing business. And customers who can’t understand that just aren’t being rational.
(2) With that being said, trying to sell a price hike to your customers as actually being a great thing for them was a pretty stupid thing to do. The better approach would have been to be frank about the realities of what was going on: “Look, we have to raise the price you’re paying because Hollywood is raising the price we’re paying. What we’re going to do, though, is give you more control over how much you’re paying by letting you pay for just the services you want. If the new price Hollywood is demanding for streaming content is too high, then you can cut back to just disc delivery.”
After fumbling the initial delivery, your best bet would have been to offer your customers (including those who recently canceled) a 3- or 6-month discount as an apology while offering a more coherent and honest explanation of what was happening.
(3) What you really, really shouldn’t do is try to somehow “make up” for your previous mistake by splitting your service into two different companies which will not share queues, ratings, recommendations, or billing. That’s a plan which significantly reduces the utility of your service for your customers.
(4) The only thing stupider than that would be if you split the service, reduce the value of the service to your customers, and then pretend that this is all supposed to somehow be a great thing for them.
I mean that would be really, really stupid. That would be making the exact same mistake you just got raked over the coals for just a couple weeks ago.
… oh dear.
I actually look at the price increase and shrugged: It was more expensive (although nobody’s price “doubled” despite the ridiculous rhetoric posted by the math-challenged; and unless you were already in their lowest possible tier of service the hike was not outrageously large), but I was still getting a ton of value for the price they were asking.
But the split in services? It’s almost certainly going to result in me canceling at least one of the services.