Netflix Price Increases – What Does it Mean?

Netflix announced earlier this week price increase to the outrage of customers. The original price plan was $8.99 for sending out a DVD at a time. Then Netflix added a free streaming service back in 2009 to try and push that service. Last year (2010) they created a $7.99 streaming-only service with $2.00 extra charge for one DVD sent out at a time. The new prices separate the streaming and mail-out service and charge $7.99 for each. Customers currently enrolled are outraged at the nearly 60% increase to $15.98. Additional costs are still in place for adding Blu-Rays and more movies out at a time.

Netflix has already responded by acknowledging some customers would be upset by the increase, but so far aren't backing down on the rate increase effective September 1st for current customers and now for new registrations. Judging by the reactions by customers, Netflix might want to reconsider the move as Redbox looks a lot more appetizing offering new release movies at $1 per DVD & $1.50 per Blu-Ray.

This graphic below, courtesy of Reddit, perfectly represents the move Netflix has made:


One thing I haven't seen mentioned is the massive growth in Netflix Streaming over the past year, which has caused them to go over bandwidth with several motion picture companies, such as Sony. This push towards streaming may be viewed as a good move for the company, but will only be good for the consumers if they bring more content – which did not accompany this price hike. Hopefully the recent addition of Star Trek and a slue of movies, including Pulp Fiction, is a sign of an increase in streamable content – otherwise, I (like many other users) will be canceling my subscription.


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Shane Paris

​Shane is the founder and Technical Editor-in-Chief here at That's It Guys. He enjoys Star Trek, 80s and 90s action movies, and everything tech related. Shane is highly skilled with computer hardware, software, and electronics.