Netflix Announces Price Changes

By Jonathan Barnes,
A bit of unfortunate news has come down the pike today, as in a post on their official blog, Netflix's Jessie Becker announced that they will be unveiling a new pricing structure that will take effect tomorrow for new subscribers and September 1, 2011 for current subscribers.

In short, Netflix is separating their DVD business and their streaming business. Here is the new price breakdown:

Unlimited Streaming w/o DVDs - $7.99

1 DVD w/o Streaming - $7.99
2 DVDs w/o Streaming - $11.99

1 DVD with Unlimited Streaming - $15.98

This will, no doubt, come as a shock to subscribers who are used to paying $9.99 for one DVD with unlimited streaming who are about to be hit with a 60% price increase.

Becker explains the price change with the following:

Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. 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. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering.
Netflix was even nice enough to post a direct link to subscribers who want to change or cancel their subscription... so you've got that going for you... which is nice.
Jonathan Barnes
Written by Jonathan Barnes
Jonathan has been a news/views contributor since 2010. When he's not writing reviews, features, and opinion pieces, he spends his days working as an informal science educator and his nights as an international man of mystery.