Netflix raises rates, irks subscriber

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By Associated Press

SAN FRANCISCO — Netflix has provoked the ire of some of its 23 million subscribers by raising its prices by as much as 60 percent for those who want to rent DVDs by mail and watch video on the Internet.
The company is separating the two options so that subscribers who want both will have to buy separate plans totaling at least $16 per month. Netflix Inc. had been bundling both options in a single package, available for as low as $10 per month.
New subscribers will have to pay the new prices immediately. The changes take effect Sept. 1 for Netflix’s current customers.
Netflix isn’t changing the $8 monthly price for an Internet streaming-only option, which the company began offering late last year. But instead of charging $2 more for a plan that also offers one DVD at a time by mail, the company will charge $8 for a comparable DVD-only plan. That brings the total to $16.
Those who want to rent up to two DVDs at a time with streaming will pay $20 per month, or 33 percent more. Those wanting three DVDs at a time with streaming will pay $24 per month, or 20 percent more.
When Netflix unveiled the streaming-only option, it also raised the rates for its most popular DVD rental plans by $1 to $3 per month.
Those plans included unlimited online streaming too, as had been the case since
The higher prices could slow Netflix’s growth as some customers cancel their plans in protest and potential new subscribers balk at the rates.
Subscribers rankled by the latest price increase vented their outrage in comments on Netflix’s blog as well as its Facebook page, where there were nearly 17,000 comments, mostly negative, by late Tuesday.