Netflix: Hey we’re going to raise your rates 50%, just FYI.

I just got an email from Netflix:

Dear Grant,

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 $11.99 a month membership for unlimited streaming and unlimited DVDs (including Blu-ray access) will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs (including Blu-ray), 1 out at-a-time (no streaming)
for $9.99 a month

Your price for getting both of these plans will be $17.98 a month ($7.99 + $9.99). You don’t need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

Translated, that means “we’re hiking up your rates by 50%”. Now that’s enough to drive customers away in itself, but Netflix decided instead to give us the option of cancelling part or all of our service. Evidently that’ll increase their profits.

Evidently Netflix doesn’t realize a couple things that their customers know:

  1. Netflix has competitors, especially for their streaming service.
  2. Netflix’s “Watch Instantly” selection is really crappy.

I’m not sure $9.99/mo for just the delivery service is enough, but it might be. I’m sure not paying $7.99/month for the steaming pile of streaming they offer. I replied suggesting they try this again after adding some real content for streaming.

I won’t do HULU+ until they stop showing ads during my paid subscription (which doesn’t sound likely anytime soon), so I guess it’s time to look into other services again, or just watch less TV… Any recommendations?