Netflix Subscribers: What's Your Reaction??
Netflix today announced rate increases. As of September, there will be no discount for people who stream and rent DVDs at the same time. The $9.99 deal (which was a sweet value proposition) is now getting bumped up to $15.98 ($7.99 streaming + $7.99 for 1 DVD-at-a-time).
The deal makes sense, since $2 dollars a month in addition to the $7.99 for streaming didn't make up for postage and operating expenses. Still, I'm really upset that there's no discount for getting the streaming + DVD bundle.
Even if customers are furious and cancel in droves, I don't see a reversal since the $2 extra never covered the DVD expenses. I think the best case scenario for subscribers is a future discount which may or may not happen.
I just downgraded to the $4.99 plan myself (from the $9.99 plan) because I really only watch 2 DVDs a month through Netflix and it makes perfect sense for me. I always thought the streaming selection was mediocre at best and it rarely offered the movies I wanted to watch, so I won't miss it one bit. If I want to watch something more, I'll Redbox it as needed.
How about you? If you're a subscriber, are you going to eat the price increase or downgrade your plan? I'm curious.