Wednesday, July 13, 2011

Netflix Raises Rates

Netflix has upped their prices and some customers are seeing red. The announcement came yesterday that the price structure was changing:
There are no longer any hybrid plans that offer access to DVDs and Internet streaming. There's one plan now for DVDs and a separate plan for streaming. Each costs $7.99 per month (for one disc at a time). To access discs and Web video, people have to pay for both plans and that means $15.98 a month.
Even though I'm not a subscriber, I was hardly surprised, having read an article earlier this week that said that Netflix was facing increased costs from the studios. Whether the recent price rises are a result of those cost increases, or the fact that customers were continuing to order DVDs at a high rate as Netflix said in their announcement, remains unclear.

One thing that has surprised me is that both yesterday and today I have run in to people complaining about these price increases. Clearly it has struck a nerve!

CNN: Angry Netflix subscribers--so, who has a better deal?
CNNMoney: Netflix's vanished Sony films are an ominous sign

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