Also, this has everything to do with the content.
When they were the only horse in the show, content providers gave them very good prices which allowed Netflix to grow. Once Netflix became massive and they realized there was a market for online video, now content providers are renegotiating the terms and asking for a lot more. Sony was first to do this, which is why all their content is now gone from Netflix.
Now Netflix has to increase prices in order to gain the revenue it requires to provide the content. My only issue is that if I'm going to start to pay up to $20/mo, I better get a lot of content.. more than now as well as newer content as well. Otherwise, I'm just going to put my cheap computer on my TV and use normal internet as that's even better/easier than PS3's.
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