Back in July of 2011, Netflix announced that it would be separating its movie streaming and DVD rental services into two separate subscriptions, increasing the cost for customers who wanted both by about 60%. The news was met with a massive customer backlash online, and over the next three months, more than 800,000 customers canceled their subscriptions and the stock price took a huge hit. The story became a lesson for corporate executives on how not to do price increases. Apparently SmugMug didn’t get the memo.
The subscription-based photo sharing service sent out an email to “Pro” customers tonight informing them of a major service change and price increase. The details are eerily similar to the Netflix case.
Bad news if you’re a film shooter and Fujifilm is your brand of choice: the company has announced that it will be increasing the worldwide price of its entire line of photographic films starting in May 2012. In the announcement, the company blames demand and economics for the decision:
The demand for film products is continuously decreasing, yen’s appreciation and the cost of production, such as raw materials, oil and energy, continues to rise or stay at high level. Under such circumstances, despite our effort to maintain the production cost, Fujifilm is unable to absorb these costs during the production process and is forced to pass on price increases. To sustain its photo imaging business, Fujifilm has decided to increase the price of photographic films.
Fujifilm remains committed to photographic products and asserts that even with the new price. Its photographic products remain exceptionally good value compared with other system products.
While the announcement doesn’t mention how much prices will increase by — they state that it will vary depending on market — Fuji Rumors reports that it will be an increase of over 10%.
(via Fujifilm via Fuji Rumors via Mirrorless Rumors)
Image credit: Roll On by Looking Glass
Kodak’s film business just can’t seem to catch a break. One week the company announced the death of its entire slide film lineup, Kodak announced today that it is increasing the price of all the surviving films by 15%, stating,
We have to contend with further increases in energy and raw material costs, and higher costs associated with lower volumes.
Therefore, to remain a sustainable, viable business, the company is implementing a price increase for consumer and professional films.
(via Amateur Photographer via Photo Rumors)
Image credit: film by ka_tate
According to Nikon Rumors, Nikon has introduced a new Unilateral Pricing Policy on DSLR gear sold in the US that will take effect on October 16th. Saying that the policy is “designed to allow customers to make purchasing decisions based on service provided and not have to worry about hunting for a better price”, Nikon plans to withhold sales to any store caught pricing equipment below “national prices” that the company will set for each product.