As it turns out, Netflix rental rates were too good to be true.
Ten bucks for unlimited streaming and mail-in DVDs was a steal when you compare it to the average price of Blockbuster rentals or even Redbox.
After cementing themselves as a major player in the movie rental industry, Netflix finally found the confidence to raise their prices.
The company sent out an email notifying their subscribers that they would be splitting streaming and DVD rentals from one price of $9.99 into two separate fees of $7.99 a month. Users can cancel either service, but if they opt to keep both, starting in September they will be charged $15.98.
The company’s blog said, “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.”
The 60 percent price increase has Netflix users none too happy. Between the site’s blog, Twitter and Facebook page, fans have voiced their outrage on the change.
On the Netflix blog, user Brian Ibbott commented, “Wow, Netflix. I supported you from the beginning, all the way back to October 2000. You rewarded your faithful supporters a few years ago by grandfathering their original plans among the new offerings, and you had my loyalty for doing so. Now, you want to charge me an additional $120 per year for your service. I can understand a $2-3 increase every few years, but $10 additional per month is unrealistic if you want to maintain loyalty & customers. Especially when there are plenty of $1 Redbox and similar services a block away from people’s houses. A small increase would have kept me as a customer, but this is too much.” His comment received nearly 300 “likes.”