Netflix is raising their prices by 60%. And with that announcement, they really made a lot of people angry (read down to the end of that article and you’ll see a lot of people talking about jumping ship).
“Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs,” Becker wrote.
Oh really? How about keeping the prices the same, but charging people who just want DVDs differently? One of the main reasons we have Netflix and enjoy it so often is because we don’t have cable. It helps us save money to go with Netflix and Hulu Plus. But now? Paying for the 60% increase plus Hulu Plus is almost like paying for cable (almost). Maybe if they had justified it within different parameters by saying something like it costs so much to maintain contracts with the companies they stream shows and movies from that the increase is warranted. They could have told us about how they’re trying to expand the watch instantly selections and that takes more money. You know, something less dicky than just “well, it doesn’t make sense to charge you people $2 so we’re going to jack up the prices by 60%. Tough.”
Will we jump ship? Part of me really wants to. Or change to unlimited streaming and get DVDs from the library. Either way, I hope Netflix listens to how unhappy their customers are.
*editing in the email we received from Netflix
We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.
Your current $14.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:
Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 2 out at-a-time (no streaming) for $11.99 a month
Your price for getting both of these plans will be $19.98 a month ($7.99 + $11.99). You don’t need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.
These prices will start for charges on or after September 1, 2011.
We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.
–The Netflix Team
It used to be that $19 – $20 would get you unlimited DVDs and streaming.