Customers of the US movie rental and streaming service Nexflix are planning to abandon the company in droves after a whopping 60 per cent subscription price hike.

Surveys have shown that as many as 41 per cent of the company's user base is prepared to cancel their monthly subscription as a result of the planned increase.

Until now, members have been able to access unlimited on-demand content and one disc in unlimited rotation for $9.99 a month (around £6).

Now Netflix has decided to split on-demand and streaming and is asking $7.99 a month for both, which means customers paying $9.99 will now need to fork out $15.98 (around £10) for the same content.

Facebook backlash

An update announcing the new premiums on the company's Facebook page has been bombarded with almost 40,000 comments lambasting the decision.

Users also seem dismayed that the price hike isn't bringing them anything extra for their investment. Netflix hasn't tempered the hike by announcing any new on-demand content, which is serverely lacking in the new releases department.

The company is now the largest consumer of bandwidth in the United States (22 per cent), and much of the increased revenue it hopes to gain from raising tariffs will go towards ever-increasing hosting costs.

Just yesterday, the UK equivalent of Netflix, LoveFilm announced that it was hiring 40 new people in London to focus on broadening its streaming offering.

Source: CNET, Business Insider