Are You Among Those Upset With Netflix?

It was a shock when subscribers recently received an e-mail from Netflix stating that their $7.99 per month for both DVD rentals through the mail and streaming of movies would be doubled. For those who want both features, it is upsetting to see that large an increase, and many subscribers are angry.

However, if you want to continue to get just DVDs through the mail, or if you want to get just the streaming, you actually save some money, so those subscribers do not have a "beef" with Netflix. If you only use one of those ways of viewing your movies, you can immediately change your program or decide by September. New customers have these updated rates immediately.

Does it pay to make a change? Overall, Netflix seems to offer the best selection, and, according to the NPD Group, the company has 61% of the market share of the movie/TV downloads and streaming market. Digital downloading provides ease of acquisition and immediate access.

Netflix's large choice of movies means negotiations with Hollywood studios, which caused the company to spend almost $1 billion to secure the rights to movies from Paramount, Lions Gate, and MGM films together with tens of millions of dollars to the Starz channel. Viacom told the Wall Street Journal, "at least half of its 20 percent growth in U.S. subscription-fee revenue was attributable" to new digital-licensing deals including one it negotiated recently with Netflix.

Movie streaming by subscription makes up over 35 percent of the movie industry's total revenue from rentals.

Will you abandon Netflix or stick it out with them?

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