Netflix has introduced a new $8 streaming-only subscription plan in the US. The plan, which allows members to instantly watch unlimited movies and TV episodes on their TVs and computers, is available now to both new and existing members. The new offer is in direct competition with Hulu Plus, which also cost $8 per month.
In order to compensate for the new plan, at least in our opinion, Netflix also announced that the price for its streaming and unlimited DVD delivery plan (one DVD out at a time) will increase by a dollar to $10 a month. Prices of subscription plans allowing for more DVDs out at a time will also increase, as detailed below. The new price changes take effect now for new sign-ups and in January for existing members.
Netflix says its members prefer watching content over the Internet. The company recently announced that in the current quarter, which ends December 31, its members will watch more streamed content than DVD content. As a result, Netflix will invest more money to license streaming content than to acquire DVDs in the same period.
"We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet," Reed Hastings, Netflix co-founder and CEO, said in a statement. "Today's action reflects the tremendous customer value we've injected into streaming from Netflix, our initial success with a pure streaming service in Canada for $7.99 a month and what our U.S. members tell us they want."