So what alternatives are there for people who like the mail order service and the huge catalogue, but don't want to give Qwickster any money? How is Blockbuster's mail order service? I go to Redbox often but there are plenty of catalog releases that are on my list of movies to see.
If you are happy with the DVD mailing service, why wouldn't you want to give Quikster money for the service? Unhappy about the price hike?
My take on it is that people have been spoiled by the streaming service, and it is hurting their business. Everyone used to love Netflix before streaming came out. I used to watch 1-4 DVD's a week. Once streaming came out I got used to the convenience of watching content on demand, and got too lazy to mail DVD's back and I have literally watched 3-4 DVD's during the year since I started using Netflix streaming. So now I'm cancelling the DVD service, but because their streaming selection sucks I'm probably going to cancel that in the future as well.
Most online movie on-demand services suck pretty badly. Their selections are always really lame. The marketplace is way too fragmented. Amazon has shitty selection. Vudu and Sony PSN have roughly the same lame movies and charge $4-6 a movie, which I consider to be too much. You are just downloading 1-2 gig file. I already pay for the bandwidth at my ISP. Other services where you pay for bandwidth (like usenet subscriptions; mentioning usenet only in terms of it being a service where you pay for the bandwidth, not as an alternative for getting content) are much cheaper.
Really, the only reason they charge this much is because they know people are willing to pay it. They know this because people have been paying this much for movies for at least a couple of decades now. Rather than charge you less because they can now deliver the content more cheaply online, they want to keep charging the same and pocket the savings themselves. This is just pure greed. One might ask why not let the free market decide, if the service can be provided more cheaply, then let someone step in and do it and drive the old guys out of business. But that's what Netflix has tried to do, and the movie studios and content providers are monopolizing the content, preventing this from happening. They are refusing to grant the licensing deals for Netflix or other guys to provide a lower cost service.
Since I disagree with this, I vote with my dollars. I will support Netflix, but unfortunately without the content I want to watch I won't pay them, so it's likely they will fail or have to change their business model.
I have gone from paying for cable/HD-DVR/2 premium channels + netflix + the occasional movie out + occasional DVD purchase, around $150 - $170/mo, to paying only for Netflix streaming, a total of $7.99/mo. I have found other means of getting pretty much the same content as before, if not more, with better features, better UI, and more convenience. All that extra money goes towards my school fund now.