Netflix just announced plans to tweak its pricing structure starting this fall. In a move that could do away with the discs once and for all, the company says they will completely separate streaming and DVD plans in the U.S. starting September 1, 2011.
The company will keep its streaming-only plan, which is priced at $7.99 per month. However, they are no longer offering any type of discount if you want to get actual DVDs or Blu-ray Discs by mail, in addition to streaming. Unlimited DVD-only plans will come in two flavors: 1 DVD at a time for $7.99 per month and 2 DVDs for $11.99. Neither option includes any online streaming.
If you can't (or just don't want to) do the math, this represents a pretty hefty increase. Previously, customers could get a plan that included unlimited streaming and unlimited DVDs (one at a time) for $9.99/month. The new total for combining those two plans will be $15.98: a 60-percent increase.
The more you pay, the less painful the increase will be. To have unlimited streaming and two DVDs out at a time will cost $19.98 per month. Plans that allow for three and four DVDs at a time will automatically come with streaming service; there is no DVD-only plan for those who rent discs 3 at a time or more. These plans are priced at $23.98 and $29.98 per month, respectively. The Blu-ray option costs more on top of that.
"Netflix members love watching instantly, but we've come to recognize there is still a very large continuing demand for DVDs by mail," said Andy Rendich, Netflix chief service and operations officer. "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."
As you can imagine, most customers aren't really thrilled with the "great value" that will soon be offered. Both the Netflix blog and the company's Facebook page have been bombarded with comments from unhappy subscribers.
For new Netflix customers, the pricing changes will be effective immediately. Existing customers have until September 1 to choose a plan, drop the service, or be defaulted into the new pricing structure based on current service.
Netflix first started streaming its services in 2007. Last year, the company announced its first streaming-only plan. To date, the company has 23 million subscribers in the U.S. alone. In 2010, the company expanded to Canadian audiences. More recently, Netflix announced plans to start streaming in 43 countries throughout Latin America and the Caribbean before the end of this year.
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