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Justin Sullivan, Getty Images
Justin Sullivan, Getty Images
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Netflix CEO Apologizes for Rate Increase, Announces Company Will Split Into Two Divisions

In the wake of unpopular rate increases that caused customers to cancel subscriptions in droves and resulted in the company stock nosediving, Netflix CEO Reed Hastings apologized in a blog post on Sunday.

“I messed up,” he said. “I owe everyone an explanation … In hindsight, I slid into arrogance based upon past success.”

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Netflix-Rates
Justin Sullivan, Getty Images
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Netflix Customers Upset About Drastic Price Hikes

DVD-by-mail and digital streaming service Netflix has announced a new pricing structure, and its customers are doing the metaphorical version of booing and throwing popcorn at the screen.

People who currently pay $10 for one DVD per month plus unlimited digital streaming will see rates jump to $16, while those who get two DVDs plus streaming will have a new rate of $20, up from $15. The price increases take effect September 1 for existing customers. New subscribers will pay the new prices immediately upon sign-up.

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