The company is splitting streaming and physical DVD subscriptions, so if you want unlimited amounts of both, the price will go up to $15.98 on Sept. 1 (if you’re already a subscriber), which, while hardly draconian, is a real increase. This, of course, comes at a time when the company is forcefully pushing back against (and probably overstating things a bit on) the idea that cell and internet providers should charge subscribers by their level of usage, rather than flat fees.
I’m loudly and crankily on the record as saying that I’m happy to pay more money for things as long as I get what I actually want for the money. And I’m not really surprised to see Netflix fees go up, particularly as they renegotiate contracts with content providers like Starz and Sony, move into producing original content, and continue to hope for deals with premium providers like HBO (which surely developed HBO GO as a way to force an eventual better deal with Netflix or a similar competitor). Folks will grumble, but I think most of them won’t quit. And between ISP warnings (about which the very wise Tim Lee is writing smart things), innovation, and slowly shifting behavior, we’ll come to new price equilibriums that will let people get what they want at prices they’re willing to pay even if they’re not overjoyed about it.