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Thursday, July 14, 2011

Is this the end of Netflix?

Netflix and Redbox have in a few short years taken over the movie renting game. Netflix through its instant view feature made movie renting super convenient and gave you the ability to watch seasons of TV without commercials back to back.

It's greatest draw, however, was how incredibly cheap it was. For under $10 a month you could have just the instant view feature and stream thousands of choices from the comfort of your couch. For under $15 you could have 2 dvds rented at a time with the instant view player as well.

Yesterday, Netflix announced a 60% price increase and the separation of the DVD and instant view feature. This out of the blue change angered many current customers, so much so that the comments on Netflix's blog maxed out.

With many of their contracts to content running out, do you think this increase was due to an increase in renting royalties? Or do you think Netflix finally got smart and realized they could get more money out of their services? Do you think people will stay with netflix despite their increase in price?