"Netflix users stormed the streaming video and DVD rental services’ blog and Facebook page by the thousands on Tuesday to criticize a new pricing structure that will raise some users’ monthly bill by 60 percent," PCWorld reports.
According to the article, "The service announced that it would separate its streaming and DVD rental services, ostensibly to let its users choose if they wanted just one service or both. The result: The $9.99 per month plan, which allowed one DVD out at a time and which currently includes unlimited video streaming will jump to $15.98 under the new price structure. Unlimited streaming or one DVD out at a time will now cost $7.99 each."
Subscribers were pissed when they heard the news. "Users left nearly 3,000 posts on the Netflix blog as of 6 p.m. Tuesday, July 12, 2011, and around 10,000 comments on the company’s Facebook page," PCWorld noted, adding, "Commentors accused Netflix of being greedy and alleged it was trying to ‘choke more change"’ out of its customers. Others suggested refreshing the streaming content to justify the price change. Others said they would be leaving Netflix."
According to the Los Angeles Times take on the story, "Executives at several Hollywood studios, who were not authorized to speak publicly on the subject, said Tuesday that they were pleased by Netflix’s move. The higher prices should help address concerns that the service was undervaluing studios’ content and encouraging consumers to avoid options that are more profitable for the studios, such as video-on-demand rentals and Blu-ray purchases."
The Times story adds, "Studios have already taken numerous steps to limit Netflix’s appeal. Four studios prevent the company from offering some newly released DVDs until 28 days after they go on sale in stores. Three others keep their films off the Netflix Instant streaming service until they finish airing on HBO — about seven years after their home video release."