I don't understand the outrage either. As I said on another board I seriously doubt Netflix is doing this as a means to gain more profit - especially in harsh economic times. Rather, I think demand is forcing them to buy more, which in turn is driving their costs up. This goes back to the same reason why they institued the $1 price increase before. Why should the 90% that don't use Blu-ray be forced to subsidize the other 10%s media purchases? I do think the model could use some tweaking, but I think it's because there are probably a lot of those 10% that ONLY rent Blu-ray discs - hence the 1:$1.