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Netflix is changing its pricing plans in the US market - eliminating the bundling of streaming with DVD by mail programs.
"We are separating unlimited DVDs by mail and unlimited streaming in to two separate plans to better reflect the costs of each. Now, our members have a choice: a streaming only plan, a DVD only plan, or both," Netflix said in an email to subscribers.
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As a result, the current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:
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Plan 1: Unlimited streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month
This is the second time Netflix has raised prices in the past 8 months.
The separation of the unlimited streaming plan (still $7.99/month) from the unlimited DVDs by mail plans (previously viewed as an add on to the streaming plan) has raised prices significantly for each of the combination plans.
Here is a gist of the plan:
* One DVD out at-a-time now costs $15.98/month (up from $9.99/month). Two DVDs out at-a-time costs $19.98/month, up from $14.99/month. Three DVDs out at-a-time costs $23.98/month, up from $19.99.
* Unlimited DVDs by mail-only plans, previously available until the introduction of streaming in 2007, will cost $7.99/month for 1 DVD out at-a-time, $11.99/month for 2 DVDs out at-a-time, and $15.99/month for 3 DVDs out at-a-time.
In other words, Netflix will no longer be offering plans that include both unlimited streaming and DVDs by mail. Netflix's streaming remains at $7.99/month, but unlimited streaming plus 1 DVD will now cost $16/month (up 60 percent) and unlimited plus 2 DVDs will cost $20/month (up 33 percent).
The plan changes will be effective immediately for new subscribers, and the new prices for existing members will start for charges on or after September 1.
