Netflix is raising their prices by 60%. Yeah, 60%. What was formerly $9.99 for unlimited streaming and DVDs is now $7.99 for unlimited streaming and $7.99 for unlimited DVDs…no price break for the combo platter. So basically they have drawn a line in the silicon telling you to choose your format.

As far as I’m concerned, I’m just going to fold my account and become a Hulu/CinemaNow user. Remember how I said that when I moved to the US I would experiment with cord cutting? Well I should move into my own flat in August and then that article will become available. It certainly looks like Netflix will probably not be a part of the mix.

It’s OK really, they have so little that I want to see it’s just not worth the $8 a month.

Here’s Netflix justification for the changes that will go into effect September 1st, 2011:

Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

So if you’ve got the $9.99 option now, you had best opt out soon or it’s going to bump up to $15.98 in September.

Personally, if you ask me, this is almost like a stab in the back to all the loyal Netflix users. Thank you for making us all big and beefy for online video streaming and DVD-by-mail…now it’s time to pay the piper.

$7.99 is barely worthwhile for Netflix now, in my opinion. If the movie studios keep thumbing their noses at them, the streaming content library is either going to stagnate or get smaller…simply put, it might time to put the Netflix account to rest and find a new source of online streaming for film… Zediva anyone?

Now I’m not really angry at Netflix, I’ve only been a user for 2 months, the first of which was free. I mean, how could I hate them when I was unable to use them out in Europe, right? Hulu on the other hand has been treating me surprisingly well in regards to what they’ve got on offer that I want to watch, and so they have now earned a place in my er… pocketbook.