Netflix announces $8 streaming-only plan, raises DVD prices

By on November 22, 2010, 10:20 AM
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."

User Comments: 5

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Guest said:

+$2 for blu-ray access means I'll be paying $12/month, considering I have to wait 30 days for new releases plus all the time they're at long wait in my queue, this change might just be enough to make me cancel. The streaming only might be worth $8/month, but for discs I'm going back to blockbuster (while it lasts). I guess if one wants to watch current content netflix isn't the place.

TomSEA TomSEA, TechSpot Chancellor, said:

Although 8 bucks a month sounds reasonable, I still won't be signing up. First of all, there just aren't that many good movies out there. Amazing the colossal amount of crap that is released. Also, Netflix streaming catalog is still pretty limited. Lastly, if I just have to see a flick, Red Box only charges a buck for regular DVD and $1.50 for Blu-Ray. Which is a much better deal considering how few movies I watch.

Guest said:

for me, this is the standout statement - "Netflix will invest more money to license streaming content than to acquire DVDs "

if they really do deliver more and better streaming then i don't have a problem with the price increase

Guest said:

They absolutely need to get more streaming content, and get new content at a much faster pace. I just cut the cord last month and while I do enjoy Netflix and love not having a cable bill, their streaming content is sorely lacking. I usally find what I want to watch available for streaming at about a 1/10 shot.

negroplasty negroplasty said:

Netflix is awesome. I don't use it anymore, but I love the fact that people are taking a liking to streaming video. Death to conventional TV subscriptions that spoon feed their customers commercials.

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