Gamefly sent an announcement to their subscriber base yesterday that they will be raising the fees on every plan by $1. Naturally, they offered discounts of up to 20% if you pay for a full year in advance. The increase was attributed to the rise in bulk mailing rates. See the announcement below:


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Dear Member,

At GameFly, we are committed to providing excellent service at prices that enable you to play all the games you want economically. However, the May 14th postal rate hike on "flat" mailers, as well as the higher cost of new console games, has significantly increased our cost of doing business.

In order to continue improving our service while facing higher external costs, we're raising the monthly fee on all membership plans by $1. All accounts billed on or after June 18, 2007 will be charged at the new rate. Since we opened our doors nearly five years ago, this is the first time we've ever raised the price of our most popular two-game plan.

With plans as low as 53 cents a day, GameFly remains the most cost-effective way to play as many games as possible. As a valued member, we're also giving you the opportunity to lock in a discounted rate of up to 20% off the new plan prices. We urge you to sign up for one of our discount plans now because this offer expires June 18th.

We look forward to serving you in the coming year, as we continue our commitment to providing the best video game rental service available. If you have any comments or questions, please contact us at newpricing@gamefly.com.


Sincerely,


Dave Hodess, CEO
GameFly, Inc.