Netflix Raises Prices, Launches Separate DVD and Streaming Plans

Netflix just announced a major change to its pricing plans that could make your monthly subscription a bit more expensive if you want to get both streaming video over the Internet and DVDs in your mailbox, but could save you a few dollars if you don’t want DVDs or don’t need the streaming service. Until now, Netflix offered a plan that included both streaming and DVDs for $9.99. Now, Netflix will offer these two services as separate plans. Streaming will now cost $7.99 and if you want DVDs, the company’s new plans now start at $7.99 for its 1 DVD out at-a-time plan. The price for getting both plans will be $15.98 per month.

For new members, these changes will be effective immediately. Current users will have to decide which new plan they want to pick by September 1.

Netflix: Offering Unlimited DVD’s as a $2 Addon Doesn’t Make “Great Financial Sense”

According to Netflix, the company decided to change its pricing because there is still a very large number of users who are not (yet) interested in streaming movies to their computers or living rooms. Here is Netflix’s argument: “Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs.”