In emails to customers this week, Zip.ca and Rogers Video Direct have announced a reduction in service and an increase in prices.

The move comes just a month after the demise of Blockbuster Canada, Zip and Rogers Video Direct biggest competitor in Canada.

Starting November 1, Blu-ray discs will no longer be available on either Zip’s or Rogers "1 out at a time DVD" plan and customers on higher plans will be charged an additional $1 fee for every Blu-ray rental.

This means that Zip customers with the basic "1 DVD out at-a-time" who want to rent Blu-ray discs will now be forced to pay $18.95 per month plus $1 for each rental, a minimum 73% increase from the current $10.95 per month.

Blu-ray disc renters on Zip's most popular "3 DVD out at a time" package will now be required to spend an extra $1 for each rental. For someone renting 6 Blu-ray discs a month, that's $30.95 per month, a 24% price increase over the $24.95 a month they pay today.

In its missive to subscribers, Zip and Rogers Video Direct say that over the last seven years, the cost to mail discs has increased 25% thereby necessitating the price increase. While it’s understandable that increased mail costs might necessitate some price increases, the company does not explain why the big increase in Blu-ray disc rentals. Since the cost to mail a Blu-ray disc is no higher than the cost of mailing a DVD disc, it seems that Rogers and Zip are trying to capitalize on the fact that their biggest bricks and mortar competition is now gone.

Digital Forum members are telling Digital Home they are outraged over the massive increase with many saying they have already cancelled service or will do so at the end of the month.

Discuss in Digital Home's What's On Blu-ray, DVD and in the theatres discussion forum.