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Netflix Will Raise Prices

That's the only chance it has at survival as a third-party streamer ( glorified bootlegger) because, guess what, it's not becoming an original programming powerhouse that could even sniff HBO's jock strap anytime soon.

Hastings needs to budge. He can just flat out raise pricing, citing Netflix's value proposition. I would pay more. In fact, I think most people would. The net effect of churn vs. more revenue and the ability to secure (in our fantasy world) higher quality content would end up positive for Netflix. But, given what happened last time he tried to change things, that might not go over well from a PR standpoint. And, believe me, Netflix is all about PR.

However it goes about it, Netlfix absolutely needs to employ a celebrity spokesperson, whose name is not Reed Hastings to massage the move on the public. Hastings has spoiled America with $8/month Netflix. And current subs sure as hell do not want to see his mug popping up on YouTube to explain a price increase.

On-demand options and tiered pricing might be the way to go.

The pitch: We're not taking anything away from you. We're still doing all you can eat for $8/month. However, if you want more, if you want stuff we would not be able to have otherwise, you can pay more for it. Cats such as myself would happily pony up.

Something's going to give. Maybe Cramer's right. Maybe it will be a buyout. I doubt it though. Hastings must budge, but he better not do something this creepy again:

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
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