I really don't see Netflix's price hike hurting them at all. Will some people leave? Yes but most will not. Most people won't even notice because it pays automatically. And $9.99 a month is still a far better deal than any cable company is currently offering. That said, there is still plenty of room for people to have Netflix and also buy movies from Ultraflix, as long as Ultraflix keeps coming with different content. They aren't in direct competition IMO.