Netflix Separates DVD and Streaming Services in the US; Raises Prices

During the first half of 2011, Netflix was embroiled in a bit of controversy while at the same time had a lot to brag about. This past April, the company boasted a staggering 3.6 million subscribers gained in Q1, and then last month, the National Association of the Deaf up and sued the company for its lack of subtitles (a fair enough complaint if you ask me). While Netflix could now be riding high on its rapid growth while fixing its current issues, it stands to lose many subscribers with some price changes it’s soon putting into place.

Previously, Netflix subscribers have been able to enjoy a $9.99 fee that would allow people access to both receiving DVDs in the mail in addition to streaming select content online. Now, these two methods of movie viewing are being split into two, and no one really stands to save any money.

A DVD-only option is being introduced that will allow you to rent one movie at a time for $7.99/mo, or two movies for $11.99. Those who don’t want DVDs but are content with a streaming-only option, that will set you back $7.99/mo.

In perusing the various comment threads around the Web, it seems like very few Netflix customers are welcoming the change. Many are threatening to leave, saying that bumping their current streaming+DVD plan from $9.99 to $15.98 per month is just too great of an increase (the math genius in me predicts that to be about a 60% increase).

If the exact same content was available on both the streaming and DVD services, I have a good feeling there’d be far less complaint. But that’s not the reality. That is that the streaming service pales in comparison content-wise, so if someone wants the best of both worlds, they’ll be forced into the more expensive plan, or cancel their service entirely.

I’m sure there are a slew of Netflix customers in our audience, so I’d love to hear from you guys and see what your thoughts are on the price hike, and also if you’ll be sticking around.