Netflix Raises Prices, Launches Separate DVD and Streaming Plans

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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.”

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Frederic Lardinois founded SiliconFilter in 2011. Before starting this site, he wrote about 1,500 articles for ReadWriteWeb. His areas of interest are consumer web and mobile apps, as well as Internet-connected devices like cars, smart sensors and toasters. You can reach him at [email protected]

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