Netflix users got an e-mail yesterday about Netflix raising prices. This new ‘deal’ includes the option of continuing to use the same Neflix service for $3.99 more per month.
According to NFLX’s 10-Q at the end of Q1, 28 percent or 6.4 million of their domestic subscribers only pay for streaming. Netflix reported a total of 22.8 million domestic subscribers at the end of Q1, which means that 17.6 million have have to choose between a streaming-only plan, a DVD-only plan, or a higher priced combined plan.
Memberships for unlimited streaming plus 3 DVDs out at any given time has now been split into two different plans. The combined plans are now $23.98 instead of the previous price of $19.99.
Many Netflix customers are outraged at this price increase and have begun visiting Blockbuster and Redbox instead of continuing their subscriptions with Netflix.
The movie rental chain Blockbuster quickly responded to Netflix customers with its own DVD promotion. Blockbuster’s new promotion includes $4.99 for children to rent unlimited children’s movies from its stores, as well as 49 cent in-store movie rentals on Sundays.
At the moment, Redbox continues to rent out its DVDs for $1-a-night.