Earlier this month, the Internet was outraged when Netflix announced they would be raising prices on packages including DVDs and online streaming. Even more outrageous than the impending debt ceiling crisis, it seems, but you know, priorities.
So what does this all mean for you, the consumer, and for Netflix?
Want DVDs and streaming? What used to cost you $9.99 a month will now cost $15.98 a month.
So, it will cost you $71.90 more a year to keep receiving DVDs as well as to stream all those 2 star movies Netflix always seems to recommend.
There is also the $7.99 unlimited streaming option, which would cost you $95.88 a year.
According to a story on Reuters, Netflix stock (NFLX) dropped nearly 10 percent today, citing that several analysts have “accepted the company’s view that the slowdown in new customers would be a temporary reaction to an unpopular price increase announced this month”
But, the article continues, “Expected cancellations from the higher prices “will be more than offset” in the fourth quarter by a gain in average revenue per user, Credit Suisse analyst John Blackledge said in a research note.”