In an email to Netflix subscribers, the company said the additional $1 reflects the price of high-definition Bu-ray discs, which are significantly higher than standard definition DVDs.
Considering that most HD VOD rentals are $1 more than their standard-def counterparts, and understandably so because of the higher bandwidth requirements, this seems like a reasonable charge.
What I find questionable is the fact that customers must change their own account settings or be charged more. Sure it’s only a buck, but a more customer friendly way to introduce the additional charge would have been to only increase subscription amounts to subscribers who currently rent Blu-ray discs.