Netflix Imposes 28% Rate Hike on Existing and New Customers

While Netflix would like to hide rate increases under the garb of "better reflect[ing] the costs of each" and giving its customers "a choice", what it really amounts to is the company passing along its increased costs of operations to consumers. Normally, that would be fine, but with consumers living under a recession that simply won't go away, and having the mindset that cutting costs is "the thing to do" right now, it's hard to get excited about what amounts to a 28% rate increase for those using both DVD-by-mail and streaming services. Here's how our math broke down on our unlimited 2-at-a-time plan:

• Old rate: $17.99
• New rate: $14.99 (DVD rental) + $7.99 (streaming)

The difference is 100 x [($14.99 + $7.99) / 17.99] = 28% increase

Now, while I certainly understand increased costs, what I don't get is the way Netflix wants to hide the cost increases under the guide of "splitting the services". It's true - if you only use one or the other, your costs just went down. But Netflix knows very well that the majority of its client base want both services. And that means increases of 28% or more as you see above.

There is a growing movement, led by disgruntled Facebook users that is screaming for the movie service to recognize they are potentially alienating consumers at a time when they need as much market share as possible. But is it a smart move, designed to stabilize the growing costs of streaming licensing fees, or a cash-grab by a greedy corporation that sees an opportunity to reset its rates to benefit them in the short-term? Are you going to rebel and bail on Netflix, or is this separation of services actually helping you? Let us know in the forums!