Netflix (NFLX) plans to increase the price for DVD subscription and unlimited streaming, doubling the current price of $7.99 per month.
Starting in September, current users will be forced to pay an increased $15.98 per month, which is split between the $7.99 one-at-a-time DVD plan and $7.99 for unlimited streaming. New users are subject to the new pricing immediately.
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, Andy Rendich, chief service and operations officer for Netflix, said in the release.
This is the first time in the company history since it began in 1999 that a package including both DVD rental and online streaming isn't available for subscription.
The company, who began by offering DVDs sent in the mail with no due dates or ate feed ,has grown to reach over 20 million members globally as a leading online subscription service.
The current unlimited DVD and streaming subscription bundle costing $9.99 a month, which was boosted one dollar from last November, will be altered on or after September 1.
The reason for the increase in subscription price has not been indicated but it is assumed that Netflix is in the process of eliminating DVDs by mail since postage costs more than streaming and the digital hype catches on globally, as titles are continuously added to the streaming list. However, subscribers may see another increase in the future since Netflix has reported their own increase in operating costs, due to hindrances in acquiring license content.