I as well as most subscribers received a notice last week that Netflix has decided to increase their rates effective September 1, 2011. As part of this price increase they have chosen to spit their packages into two parts; one part is just streaming and the next is for actual DVD's via mail. While this didn't bother me at first, I am now thinking when the time comes for the increase that I will keep the streaming at $7.99 per month, but drop the DVD option all together. My reason for this thinking is while we have the unlimited 2 at a time DVD option, sometimes I just get really lazy  busy and have movies here for weeks before I watch them. I do occasionally get on a roll and watch movies constantly, but this is not often enough to justify the price increase of $5.00 more per month. We do however use the streaming service a ton. My son and daughter are always putting something on from them via the Wii. I have never understood the appeal of Redbox, that is until I tried it out this past week. I mean sure you have to go get the movie and return it rather than just receiving them in the mail, and then returning them in the mail, but you can return them to any kiosk not just the one you rented from. Why did I try them out you ask? Well one major downfall with Netflix is the delay in them receiving new titles as well as the delay that can be lengthy for these new releases to be sent to you because of demand. I really wanted to watch Insidious and I wanted to see it while I had the time. I found it available at a Walgreens Redbox kiosk less than a mile from my home, and even found a free code to rent from a Walgreens location. WOOT. I always see free coupons available so if I wait and rent when they are available then I score free movies.

I do understand why they are doing it, costs rise for them and they must pass it on but they just raised them not too long ago. I was ok with $14.99 a month for it, but I am not ok with $19.98. I just do not feel that their service warrants it when there is a viable and cheaper alternative. I have also heard rumors that part of their reasoning is to go to streaming only in the future and if this is the case I will gladly pay a premium to be able to stream unlimited movies then, however right now their selection of movies to stream is pretty limited. So if and when that time comes Netflix can have a premium cost from me for a premium service but until that time comes they will lose $12.00 a month from me and apparently many others as well as losing subscribers all together.