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Netflix Rates Up, Approval Down

by: Rebel - Havertown, PA
started: 07/14/11 9:27 am | updated: 07/14/11 9:27 am

This week, Netflix announced it would raise its prices by up to 60 percent for the millions of subscribers who want to rent DVDs by mail and watch movies online.

Netflix will be splitting up its two services, which means that subscribers who want both streaming video and DVD-by-mail access will have to get separate plans that cost at least $16 per month total.

Netflix had been offering both services as a single package that was available for as little as $10 per month. The price changes took effect immediately for new subscribers and will begin Sept. 1 for current Netflix customers.

More than 40,000 people had responded on Netflix Facebook page saying they would switch vendors or cancel altogether.

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"I can definitely afford it, but I dropped them on principle," said Joe Turick, a technology engineer in Monroe, N.C., who has been with Netflix for about a decade.

"Everything Netflix does is with extensive research and testing and analysis, so we expected some people to be disappointed," company spokesman Steve Swasey said.

While thousands complained on Facebook, Twitter, and other websites, Netflix has 22.8 million customers in the United States, so it was clear that many were not upset about the change - or at least not upset enough to complain publicly.

In online postings, a number of users concluded that, even at the higher price, Netflix was still a better deal than competitors.

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