Customers of Netflix are about to have a 'very bad day' as their monthly subscription costs go from $10 to $16.

How did this happen? Well, for a long time, costs of sending physical DVDs in the mail have continued to rise, and with the popularity of Netflix, a price increase wouldn't necessarily turn customers away. When you think about it, the $10 a month fee which gives you one DVD in the post and streaming movies is very reasonable. The $16 price tag for the same service is a big increase, but in the long term, I don't see this eroding the Netflix base.

On top of the price increase, people choosing to opt out of DVD mailing can subscribe to a stand alone fee of $8 month for streaming only. The technology shift we are seeing today means that more movies will be downloaded online, and DVDs will inevitably disappear in the years to come. Now that ISPs are upgrading their capabilities, digital content will be the first-stop shop for consumers.

At the end of the day, if you are not prepared to pay even a minimal price for high quality entertainment, then why did you go out and buy $20 DVDs a few years ago? Today it's actually cheaper to watch movies and Netflix has become one of the pioneers of delivering home entertainment thanks to the speed of the web and a unique service.