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Netflix hikes streaming rates, confirms more DVD-only plans

updated 01:30 pm EDT, Tue July 12, 2011

Netflix raises streaming prices to get content

Netflix on Monday confirmed the existence of its DVD-only plan while adding another and raising streaming prices. The company now has just one plan that merges both streaming and DVDs athat will cost $16, or the exact cost of the DVD-only and streaming-only services put together. A second DVD option at $12 per month allows two discs at a time.

The company explained the decision to drop any plans with a mix of limited DVDs and streaming as an attempt to simplify its lineup. It "better reflect[s] the costs" of the plans by themselves, Netflix said.

New customers see the new plans immediately. Existing subscribers will be pushed to use one of the new plans on September 1 and can't be grandfathered in.

The strategy is likely to anger existing users, many of whom had been paying $10 a month for one DVD at a time with streaming thrown in. Many of these viewers often used the DVD component as a catch-all for when a movie wasn't available for streaming and will now have to either accept a 50 percent price hike or else give up one of the two features.

Streaming has steadily become Netflix's most popular feature and has led it to get 61 percent of the US digital market, toppling even iTunes and traditional TV carriers' video on demand systems. The $8 streaming-only plan has played a role along with support on many set-top boxes, iOS, and more recently Android. Higher prices for an ultimate subscription may see some balk and turn to alternatives.



By Electronista Staff
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Comments

  1. markf21

    Fresh-Faced Recruit

    Joined: Mar 2000

    +1

    Confused

    Is it $16.00 or $16.00 plus $12.00 for a second DVD.

  1. cmoney

    Mac Enthusiast

    Joined: Sep 2000

    +4

    Thanks for lowering my bill

    I guess I'll be switching to the $8 streaming only plan and getting DVDs locally.

  1. cmoney

    Mac Enthusiast

    Joined: Sep 2000

    +6

    Re: Confused

    The $16 plan is $8 streaming + $8 1 DVD. So it's probably $8 streaming + $12 2 DVD = $20. With a $2 bluray addon.

    I just logged into my account and they said my current $11.98 streaming + 1 DVD + Bluray will go up to $17.98 for the same plan. So it's time to cut out DVDs which I'm sure is their plan all along. Although in my case, they're losing $4 a month since I kept the DVD option but rarely used it.

  1. ccoulson

    Fresh-Faced Recruit

    Joined: Nov 2008

    +5

    iTunes impact?

    Hmmm. What happens when Apple offers a subscription service for streaming their content? In that case, I would likely use iTunes for most media, then use a Netflix DVD subscription as backup.

  1. lamewing

    Dedicated MacNNer

    Joined: Aug 2004

    +8

    Knew it was going to happen

    This is the second price hike from Netflix since we joined. I was paying $16.00 for 3 DVDs and streaming. Now I pay $20 for 3 DVDs and streaming. Now they want me to pay $20 for 2 DVDs and streaming? Forget that.So I can go DVD only and rip the DVDs to create my own streaming option....or just cancel my service.

    Maybe it is time to take up jogging and reading novels for my entertainment. /sigh

  1. facebook_Joe

    Via Facebook

    Joined: Jul 2011

    +11

    Back to the Library

    Netflix can keep their price increase... I can borrow DVD's from the library and if I am desperate to stream a movie, I can use iTunes or Amazon. Why would anyone pay 100% increase on anything without an increase in service. They have lost a customer.

  1. Grendelmon

    Dedicated MacNNer

    Joined: Dec 2007

    +3

    2 DVDs out and Streaming

    Currently costs me $15/mo. Now it will be $20/mo, a 33% price increase. What a load of c***.

  1. PBG4 User

    Senior User

    Joined: Feb 2001

    +1

    Wrong Story Title?

    Shouldn't the title be "Netflix hikes DVD rates"? From what I can tell, streaming only is still $8/month?

  1. pottymouth

    Junior Member

    Joined: Nov 2003

    +1

    comment title

    Meh. It's still one h*** of a bargain compared to my cable bill.

    Netflix rules. Suck my a**, Comcast.

  1. TomSawyer

    Fresh-Faced Recruit

    Joined: Jan 2008

    +9

    Netflix is pushing streaming

    ISPs are either already, or will soon, cap broadband consumption. They're sticking it to consumers coming and going.

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