The interwebs set ablaze yesterday at the announcement that Netflix would be raising its prices by 60%. As laid out by Industry Leaders Magazine, the hike comes for two reasons: to create enough revenue to deal with the escalating costs of negotitating streaming deals with the studios, coupled with generating revenue on the DVD only plans which seem surprisingly in demand.
The $7.99 streaming only deal will now be separate and it will cost another $7.99 to get the 1 DVD only plan added on, and $11.99 for 2 DVDs.
For me personally, I have the streaming/2 DVDs plan with the Bluray option (Bluray comes for a couple bucks extra/month). My fee will jump roughly $5/month.
But when I look at it, it’s still a great value. I like to watch old TV shows I’ve missed out on. I’m currently into The West Wing and The Larry Sanders Show. What’s my alternative exactly? The West Wing runs at $50 a pop (per season) on iTunes. I could just buy the box set but that would be expensive too.
It’s understandable why the hike was introduced and is ultimately not a deal breaker for me. Plus if it brings better streaming content on board, that would be cool too.