Popular movie rental service Netflix announced price increases to its subscription plans this summer that will take affect in September despite objections from many of its customers.
The company decided to separate the unlimited online streaming and unlimited by-mail DVD plan, which had previously cost $9.99 a month, to more accurately represent the cost of providing the services, according to a news release.
“Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail,” said Andy Rendich, Netflix Chief Service and Operations Officer, in an online statement. “By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail Blockbuster.” Blockbuster also issued a statement offering disgruntled Netflix customers a special 30-day free trial of Blockbuster’s rental plan.
But the changes aren’t upsetting everyone.
“I know [the prices] are going up, but I like it, so I’m going to keep using it,” said Ashley Hilliard, fashion merchandising senior.
Hilliard, who uses the streaming and DVD plan which will nearly double in September, said the price increases don’t affect her because her parents pay for the subscription.
Some students aren’t even aware of the pricing changes taking place.
When history senior Meghan Foxworth was told about the increase, her initial reaction was anger.
“I’m pissed,” Foxworth said.
But she said she isn’t familiar with other movie rental plans like Blockbuster and is more comfortable with Netflix.
“It’s kind of a monopoly,” Foxworth said.
Foxworth said she uses Redbox, but it sometimes doesn’t have the newest releases or movies she’s looking for.
The price increase won’t affect people like civil engineering junior Zachary Collier, who uses Netflix’s streaming-only plan.
“I already had [the] instant [movie plan], so the price didn’t change,” Collier said.
He said he has tried using Redbox, but it doesn’t always have what he is looking for. Collier said when he wants to find a specific DVD he uses his friend’s Netflix DVD rental plan.
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Contact Kevin Thibodeaux at [email protected]
Netflix users react to price increases on combined streaming, DVD service
August 23, 2011