Netflix stock is plunging as a result of the company's decision to force viewers to choose between streaming video and DVD delivery, or pay more than 60 percent more than they were paying to keep both.
The company chose a very bad time to raise their prices, as Amazon just formed a partnership with CBS that will let them stream even more of that network's content in their movie and TV rental offerings. And that's not all the new competition in movie and TV rentals. Even YouTube lets viewers rent movies these days!
So why did Netflix choose to change its plan now? Greed seems to be the answer, but it is beginning to look more and more like a very bad decision. Netflix is not in real trouble yet, but if stock is falling now, it's going to be very interesting to see what will happen when the new plans go into effect in September.