As we just got done saying yesterday
, Netflix is facing very steep price hikes as they begin renewing contracts with copyright holders who are uncomfortable with the amount of market power Netflix has quickly accumulated. As you might expect, those hikes will be passed on to you and your already recession-pummeled wallet.
Another salvo of hikes came today, as Netflix announced via their blog
that they're making a number of pricing changes, including two new DVD rental plans: $7.99 a month for the 1 DVD out at-a-time plan and $11.99 a month for the 2 DVDs out at-a-time plan. More notable however is an effective price hike (the second this year for some) for those who enjoyed unlimited DVD and unlimited streaming:
...we are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice: a streaming only plan, a DVD only plan or the option to subscribe to both. With this change, we will no longer offer a plan that includes both unlimited streaming and DVDs by mail.
In other words, users who used to pay $10 a month for a plan that offered unlimited DVDs and streaming, now have to pay $8 a month for unlimited streaming, and
$8 for unlimited DVD rentals ($16). Netflix's Jessie Becker attempts a rather ham-handed justification for the hikes, insisting the change is because Netflix realized that "treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs." In reality, Netflix is just raising prices in preparation for the severe beating they're about to get from broadcasters in negotiations.