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Is it time to investigate Redbox and Blockbuster Express?

Netflix announced a rate increase on Tuesday.  The announcement was sent in a  blog post and email to users.

Many expressed outrage via Twitter and Facebook, others said they were canceling their subscription altogether, noting the increase made the service not worth it.

The increase comes as Netflix begins offering streaming and disc only plans.

"We are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice: a streaming only plan, a DVD only plan or the option to subscribe to both. With this change, we will no longer offer a plan that includes both unlimited streaming and DVDs by mail," Netflix's Jessie Becker said in the blog post.

For example, the current $9.99 plan offers unlimited streaming and unlimited DVDs coming one at a time. That plan will now become two: unlimited streaming for $7.99 and unlimited DVDs (one at a time) for $7.99. It means users who want to continue to use both will see a $6 increase in their rate.

Newly subscribing members will have an immediate change in the rate, while existing customers have until Sept. 1 to decide which plan they want to use, or continue subscribing to both.

According to Pogue's Posts, a blog with The New York Times by David Pogue, Netflix denies that higher costs of doing business have anything to do with the most recent price hike ... a hike which amounts to a 60% overnight price increase.

Pogue talked with a spokesman for Netflix over the phone who told him, "Netflix knew that there would be a nasty backlash, and has already taken the subscriber defection into account in its financial forecasts. It still figures it will come out ahead."

Click here to read more on "behind the increase" from the Associated Press.

What do you think ... are you upset at the change?  Is the $6 increase worth it?

Will you be canceling part or all of your Netflix subscription before the new rates change?

Voice your opinion below or on our Facebook page here and don't forget to take our poll below!