Bad news today for Netflix subscribers. The streaming and DVDs-by-mail company sent out a message to its members explaining new price changes and plans for its subscription service.
Instead of offering a combined $9.99 plan, which includes unlimited streaming and DVDs by mail (one out at-a-time), Netflix said it will split the service into two distinct plans, beginning in September. At that point, consumers can either purchase an unlimit*ed streaming-only plan, for $7.99 per month, or an unlimited, one-out-at-a-time DVD plan for the same price. (Two-out-at-a-time will cost $11.99.)
But to receive both streaming and DVD-by-mail (one-out-at-a-time) benefits, sub scribers will now have to pay $15.98 per month, or roughly $191 per year--a 60% increase from the original combined plan.
The price changes come as Netflix looks to push more of its users to streaming while not cannibalizing its DVD business. As CEO Reed Hastings has said, "By every measure, we are now primarily a streaming company that also offers DVD-by-mail.? Last year, the company introduced a $7.99 streaming-only service, which many saw as a competitor to Hulu Plus. But with its new price plan, Netflix is clearly looking to either drive users to its streaming platform, or keep them solely renting DVDs--if they'd like both services, they're going to have to pay for it.