What's Your Take On The Recent Netflix Price Changes?

Netflix has revealed some big bumps in its subscription costs. Still a great deal, or outrageous gouging? You tell us.

If you're anything like the editors at Game Informer, when you log on to your game console these days you see a lot of friends running Netflix streaming. Heck, you're probably one of them. The library of Netflix movies and TV shows has continued to expand in the last couple of years, and the growing content list seems especially attuned to the gaming crowd, with lots of animation, action movies, and science fiction among the most prominent additions.

Yesterday, Netflix revealed some dramatic changes to its pricing structure. Previously, subscribers could get a single DVD at a time plus streaming service for $9.99. Now, those two options are split into separate charges -- the same deal will now run you $15.98 a month. Alternately, you can get just streaming for $7.99, a single DVD at one time for $7.99, or two DVDs at a time for $11.99. The changes will go into effect at the beginning of September.

No one likes paying more for a service they like, but the change in Netflix pricing is likely connected to the expected shift on operating costs coming its way in the coming years. Wedbush Securities analyst Michael Pachter predicts that Netflix's streaming content licensing costs will go from $180 million in 2010  to $1.98 billion in 2012.  [Source: CNN] The shift in costs comes as content providers are increasingly recognizing the popularity of streaming video content, and are asking more for licensing that content. If Netflix users hope for the service to maintain quality standards in the coming years, the money will have to come from somewhere. 

Tens of thousands of users had things to say about the change on Netflix's Facebook page in the hours since the announcement, and many others expressed frustration on the Netflix blog page. Many of the comments promised they'd be canceling their service over the price hike, or complained that the price jump was far too drastic.

What's your take? Is Netflix out of line to ask for such a dramatic uptick in subscription charges all at once? Or is Netflix still a really good deal for the money, even if it's more money than it used to be? Is this the way for Netflix do get the additional money it will need to keep the service vital in the coming years? Or is there a better way for the company to move forward? Let us know your thoughts in the comments below.