Here is an excellent article in which a journalist puts the tough question to Netflix: why? The funny thing is, the answer is muddled and circular, and the journalist calls them out on it. Just tell us why. If there's a good reason, we'll listen.
So far, there is no good reason.
A 60% hike means they come out ahead if they lose half of the customers who subscribe to this type of service. There is debate about whether they want to demolish DVD supplies, but Netflix denies this is the case. They claim to be surprised by the amount of DVD demand (really??) and without any valid math to back it up say this is the best way to service their customers.
The one point I have to agree with is that it's no longer an excellent value. I understand business and supply and demand. To raise prices so sharply without explanation and without even a token offering of improved service is inviting a backlash like the one we are seeing. There has been no official promise to expand streaming choices.
Netflix had better come up with something soon, or they could be reduced to a cautionary tale of killing the golden goose.
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