I don't even think you need to call them jerks. Just say something like, "Our new licensing deals have us moving to a model where we are charged, not for how often you stream video, but for everyone who could potentially stream video. This means that if you're not watching our instant streaming at all today, but only using the DVD service, we still have to count you as a head. So we decided that the best way to handle this was to separate our DVD from streaming service. This way we, and you, pay for the services you use, and not what you don't.

Now you may then ask, 'why the fee hike?' Simply put, the math doesn't add up otherwise. To keep $9.99 pricing we'd have to do something like $4.99 for DVD rental and $4.99 for video streaming. Compare our DVD pricing to Blockbuster -- even at $7.99/month we're still cheaper. $4.99 for video streaming would only barely cover our licensing costs. We found a reasonable price point that allows us to offer great DVD and streaming services going forward."