Under the guise of “giving members a choice,” the new rates from Netflix reflect film studio’s demand for more licensing fees. Netflix is, in reality, simply “renting” content from the studios. The studios have the ultimate control (as we saw with Sony recently yanking a bunch of titles from Netflix Instant Watch), so the party may be over for Netflix who will most likely see a huge spike in licensing costs.
Expect Amazon, Google (YouTube) and maybe Blockbuster to jump on the chance to even things up with Netflix who currently commands the streaming market.
For existing subscribers, the new pricing will be effective September 1. New members will be charged the fees mentioned above.