Netflix Irks Subscribers By Changing Plans

Netflix announced today it is separating its unlimited streaming and unlimited DVD plans in the U.S. With this change, Netflix will no longer be offering unlimited plans that include both streaming and DVDs by mail. The unlimited streaming plan will remain at $7.99 a month. The price for getting both unlimited streaming and unlimited DVDs will be $15.98 a month ($7.99 + $7.99). Ouch!

Here's the email we got today:

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011

These changes raised the ire of Netflix's fans on Facebook, almost 9,000 of whom stormed onto its page to voice their vehement disapproval. Many of them complained about Netflix's "greed" and said they were going to leave Netflix for Redbox. Other users suggested services like Crackle, Hulu Plus and even Blockbuster.

More than 4,300 have commented on the Netflix blog, and again, reaction seems to be against Netflix, for the most part.

Netflix has been pressured to increase margins as it tries to expand it's international user-base.  Let's hope they don't alienate their US subscribers to the point that they start shopping elsewhere.

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