When Netflix announced it would split up its streaming and disc subscriptions, making customers choose streaming or one-disc-at-a-time plans at $7.99 a month each, it didn’t offer much of an explanation as to why the price hike was needed. A writer at The Motley Fool took CEO Reed Hastings to task and asked him to justify the increase, and was surprised to get a response.

In the reply, Hastings reasons that the company will used most of what it clears from the new price to fortify its streaming technology. The Motley Fool summarizes the message:

*Hastings started with an apology: “I’m sorry you felt jammed by our message.”

*He then responded to my plea to have the rate hike explained: “We will take the increased revenue and mostly spend it on more streaming content … we want to be able to have stronger and stronger streaming.”

*And he concluded by making a fair assessment of what Netflix has to offer right now: “It is a big increase, I know, but we feel each of the $7.99 programs are a great deal on their own.”

Now that Netflix insists it will funnel the new money into the streaming service, what programming gaps would you like it to fill?

Reed Hastings Responds [The Motley Fool]

Previously: Want Both Netflix Streaming And DVDs? That Will Now Be $15.98

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