Netflix is taking a lot of heat for the big increases in plan pricing. My account page says:
The price of your Unlimited Streaming + 2 DVDs out at-a-time (Unlimited) plan will change to $22.98 (including $3.00 for Blu-ray) (plus any applicable tax) a month starting with your next billing period on or after Sep 01, 2011.
To stay at the same $18/month I now pay for streaming video and two discs at home, with the Blu-ray option, I have to drop to one disc with Blu-ray. So that’s what I’m probably going to do. Right now there are only two Blu-ray titles in my disc queue, so I’m even considering dumping the option, because that would be $7/month less than the $23/month the 2-disc plan will cost in September, and that’s $7×12 months=$84, which would cover the $79/year that Amazon Prime costs. It’s a classic Economics problem in determining marginal utility.


