Depending on how you use Netflix, your monthly bill could be increasing this fall. Netflix announced Tuesday that it is turning its unlimited DVD and unlimited streaming services into two separate plans.
Currently, customers can take one DVD out at a time and watch unlimited movies online for $9.99 per month. Starting immediately, new customers will pay $7.99 per month to rent one DVD at a time by mail or $7.99 to stream movies online. Customers who want both services will pay both fees, for a combined total of $15.98 per month. That’s a 60% rate hike.
For existing Netflix users, the changes go into effect on September 1.
Netflix started experimenting with a $7.99 streaming-only plan in November.
“At the time, we didnât anticipate offering DVD-only plans,” wrote Netflix VP of Marketing Jessie Becker in a blog post. “Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members.”
Considering this demand, she wrote, it doesn’t make financial sense for Netflix to offer DVD service as a $2 add-on to its streaming service. Nor does it satisfy the needs of people who only want to use Netflix’s DVD service.
How does the new Netflix pricing affect you? Will you be dropping either the streaming or DVD service because of the pricing change?
Photo courtesy of Flickr, matthew393
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