LOS GATOS, Calif., July 18 (UPI) -- California-based Netflix, catching heat over a price hike for its streaming video/DVD service, was hit by a power outage that took down its streaming service.
The company said the problem was corrected after customers were without the service for several hours Sunday; however, it was mum about what caused the outage, CNET reported Monday
Complaints about the outage piled on outrage that erupted last week when Netflix announced it would bump up monthly subscription rates on its DVD and DVD/streaming plans, prompting a huge backlash from irate customers.
Netflix offered a couple of reasons why it was increasing the prices, USA Today reported. First, it underestimated demand for DVD rental and second, it has to cover the expenses for licensing rights from movie studios and television networks to provide better content, the company said.
"Netflix is under enormous pressures from the content owners to write bigger and bigger checks," Arash Amel, digital media research director at IHS Screen Digest, told Daily Tech. "It had to find the money from somewhere."
