Netflix's plan to separate its streaming and DVD rental plans and essentially double the price of subscribing to both services is not sitting well with current customers.
The blog post announcing the split currently has more than 11,000 comments from the Netflix community and Facebook, many of which complain about the lackluster selection on Netflix's Watch Instantly service or express disappointment in Netflix's decision to raise prices on loyal customers.
Starting immediately for new customers and on September 1 for existing users, Netflix will charge $7.99 per month for access to its streaming service and a separate fee for DVD rentals ($7.99 for one out at a time, $11.99 for two DVDs, and so on). Subscribing to one DVD plus streaming, for example, will jump from $9.99 per month to $15.98.
Several customers were annoyed that Netflix was not providing a discount to those who subscribed to streaming and DVD rentals.
"How about a discount for customers that choose both DVD and streaming plans? That way, you're not only 'appeasing' customers who want unlimited streaming OR DVDs, but you're also giving some incentive to keep both services," a user name Mike wrote via Facebook.
A subscriber named Meghan said she liked the idea of a split, but was not willing to pay $16 per month for both. "Maybe reduce the price to $12 or $13 for both streaming and DVD," she suggested.
"At the very least, a discount for both services would be in order, if not for all members then certainly for those of us who have already been subscribers," wrote another named Travis. "I have had my account more than a decade and I must confess I feel very much taken for granted right now."
The loyalty issue was brought up several times.
"Wow, Netflix. I supported you from the beginning, all the way back to October 2000," wrote Brian. "You rewarded your faithful supporters a few years ago by grandfathering their original plans among the new offerings, and you had my loyalty for doing so."
Subscriber David agreed. "I get the new price for new customers. But not allowing existing customers to keep their plan is ridiculous," he wrote.
Though users in Canada and, soon, Latin America and the Caribbean can only subscribe to Netflix Watch Instantly (no DVDs), many U.S. users were not convinced that its streaming selection was worth an additional $7.99 per month.
"The only way that this is terrific for the customer is if you plan to offer your entire collection available for streaming," wrote Scotty. "Otherwise this is just yet another way to choke more change out of your customer."
Justin also requested "newer and more content in the streaming catalog. I love your product (honest) but these decisions will not keep me around."
"If you want to offer your whole library streaming in HD then I will gladly pay a higher price, but if your plan is just to charge more for the somewhat mediocre selection of streaming titles that you currently have then I will no longer be using your product," Jeremy concluded.
Some users said they had already cancelled their Netflix accounts altogether, while others said they would check out competitors like Amazon and Redbox.
"I've been buying a lot of videos from Amazon Instant Videos because Netflix doesn't have them; maybe I need to switch to Amazon for my streaming, too," wrote a subscriber named Bob.
"I think Redbox is going to KILL them over this," said Mary, while another user named Elizabeth joked that she was "cheating on [Netflix] with Hulu+ anyways."
Several users complained about price hikes in trying economic times, though many responded that if those users were in such dire economic circumstances, they probably shouldn't be spending their money on a service like Netflix.
At least one user, however, sided with Netflix.
"While not happy with the price increase, it was expected. I knew that it didn't make sense to keep mailing dvd's and streaming content for such a low price," wrote Kristian. "The studios have started to see a new revenue stream here as well and are really starting to gouge netflix for the content."
In announcing the new plans, Netflix said that creating a DVD-only rental option "will ensure a long life for our DVDs by mail offering," but as Kristian pointed out, building a streaming library is not cheap, and Netflix has signed a number of licensing deals with major movie and TV studios lately, not to mention its own original program set to debut in 2012. Essentially doubling the price of some of its plans will no doubt help fund those ventures.
Not everyone understands those constraints, however. "In the immortal words of Stephanie Tanner: 'How rude!'" wrote subscriber Cari.