While this rights the ship, Netflix made the colossal mistake of rocking the recurring-billing boat. Smart businesses know that when you've got a customer setup for recurring monthly billing, there's a certain percentage of these customers who will continue to pay even though they're not actively using the service. Part of it is laziness of figuring out how to cancel. Another part is the thought that they may someday…
We switched to the streaming-only plan before our billing cycle and have been happy ... We weren't good at quickly watching the DVDs and returning them anyway plus we saved a buck a month. How did other HNers respond to the price hike? I would expect this group to be dominated by streamers anyway.
The combo of streaming and dvds is still less than we were spending (in $ and hassle) on dvd rentals from the local big-selection store most months. (And comparing any of this to the entertainment option of cable is a big win, obviously.) Redbox seldom to never has anything to interest me, and the lack of depth to the Netflix streaming catalog precludes me wanting streaming alone. I'm somewhat bad about holding a disc for a while (b/c I often get documentaries and educational stuff, so I have to be in the right mood), but my wife watches what she gets very quick, so that common complaint doesn't bite us much.
She regularly gets dvds that are rare enough that they have to ship the disc from across the country, and I really like that Netflix will send us the next disc from the queue to "make up for the delay" which has never been much of a delay at all. So, many times we have had one more disc on hand than the plan we pay for. Good customer service like that is still something Netflix does. The two-websites and queues plan made me worry they had lost their senses, but this reversal and having had three discs this week when I pay for two has me still in the loyal customer column.