Netflix Raises Prices 60% by Separating Streaming and DVD Movie Plans in US
Netflix announced today that the company is launching new unlimited DVD-only plans in the United States that might make some customers unhappy. The 1 DVD out at-a-time plan is now $7.99 a month and the 2 DVDs out at-a-time plan is $11.99 a month. If you want to stream movies you now must purchase Netflix’s unlimited streaming-only plan that will remain at $7.99 a month, while its “1 DVD at a time” plan will also cost $7.99. That means customers who want both streaming and 1 DVD at a time will have to shell out at least $15.98 a month. That’s a big jump (nearly 60% more) from the $9.99 a month customers currently pay for a plan that offers unlimited streaming plus 1 DVD at a time. Ouch! For new Netflix members, the changes will be effective immediately. For existing members, the new pricing will start for charges on or after September 1. Will this rate increase cause you to cancel?
“Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail,” said Andy Rendich, Netflix Chief Service and Operations Officer. “By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members.”
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