July 13, 2011

Netflix Announces New Pricing Plans

Millions of Netflix subscribers who use the company's DVD service through the mail and watch streaming video online will soon see a price increase.

The new rates were introduced on Tuesday.

Netflix customers who want to enjoy both DVDs and Internet streaming will need to purchase separate plans that will cost around $16 a month, compared to the $10 a month fee users current pay for both services.

For customers who only want the northern California company's DVD service, the cost will be $8 per month. Those who are only interested in streaming movies will remain at $8 a month.

"We are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice," blogged Jessie Becker of Netflix.

Netflix Chief Service and Operations Officer Andy Rendich wrote in a statement: "Netflix members love watching instantly, but we've come to recognize there is still a very large continuing demand for DVDs by mail. 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."

However, subscribers don't see it that way. Instead, they see it as more of a price hike than a choice because only a fraction of the service's move and television show library is available for streaming, reports AFP.

"The only way that this is terrific for the customer is if you plan to offer your entire collection available for streaming," Scotty Fagaly, a Netflix subscriber blogs on the company's chat forum.

"Otherwise this is just yet another way to choke more change out of your customers."

New pricing is effective immediately for new Netflix subscribers; and existing members will see the new pricing on or after September 1.


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