Even before this announcement I was going to switch to streaming only or 1 DVD at a time since I barely watch discs anymore. Hell, I had Harry Potter and the Half Blood Prince for over a year and never watched it. I find myself streaming TV shows I never watched the first time around more and more, but they've purged the show selection pretty significantly recently which doesn't bode well.
That said, I don't blame Netflix for the price increases at all.
Pachter told CNN earlier this week that Netflix's content cost could grow from $180 million in 2010 to $1.98 billion in 2012.
A 10-fold increase in licensing fees? Leave it to the studios to fuck it all up. Guess they didn't learn anything from the music industry and are going to let their greed kill off a good thing. Good job, morons.