Netflix price gouging 2009

So Netflix has decided to kick us when we're down or try to pull us down with them as they're drowning. In either case, what this means is that they have decided to suddenly hike up their rates for customers opting for Blu-Ray DVDs (when available), from a flat $1 per month to $4 a month for those of us on the 3-DVDs-at-a-time plan. It basically works out to an additional dollar per month per DVD-out-max, starting from the 1-DVD out limited plan.

This represents the 2nd Blu-Ray-related rate increase in less than 6 months, the first being a flat $1 per month charge which was instituted (to much customer protest) in November 2008. It is clear now that this rate increase was insufficient, if an entirely new rate schedule was implemented less than 6 months later. Good job, Netflix finance people.

1300 titles in a library of 250,000 titles represents 0.052% of Netflix titles in Blu-Ray. How this translated into a 11-20% rate hike that they charge every month regardless of availability or actual receipt of Blu-Ray discs is ludicrous. To make such a move in a time of economic difficulty is financial+marketing suicide. Worse than the actual financial analysis behind this decision was the very poor way this decision was communicated to customers (e-mail: "Hello, we are instituting a 400% rate increase for Blu-Ray access and will automatically start charging you for this immediately.") - without showing them the reason behind the different rates and the options for changing plans/rates, should the new increase be unacceptable.

The only reasonable reaction to a business that is so clearly gouging its customers and overcharging for mediocre-at-best services is to take one's money elsewhere.

I will be:
- Investigating Blockbuster's competing service, which does not charge extra for Blu-Ray titles
- Immediately reducing my plan