James Helsby

Netflix is charging you more (or less) for your movies, starting September 1st

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Netflix, the ubiquitous DVD by mail service, has launched a new pricing structure that will allow you to have an unlimited number of DVD’s by mail for just $7.99 per month.

Starting September 1st (or today for new subscribers) Netflix will offer a bunch of new service levels.

DVD by mail service

  • 1DVDs, Unlimited times per month $7.99
  • 2DVDs, Unlimited times per month $11.99

Streaming service

  • Unlimited steaming, $7.99 per month

Then, you can add the two types of service together to get your monthly cost

  • 1DVDs + unlimited steaming, $15.98 / month
  • 2DVDs + unlimited steaming, $19.98 / month
  • 3DVDs + unlimited steaming, $23.98 / month
  • 4DVDs + unlimited steaming, $29.98 / month

The most common account held on Netflix (and the same one I have) is the 2DVDs+steaming. Unfortunately, this will have a 33% price increase come September 1st, going from the current $14.99. It will also be the second price hike for 2011, as January 1st brought the prices up from $13.99 to $14.99 per month for the 2disk + steaming accounts.

I love Netflix, I really do. But a price increase of 33% is a huge jump, and it leaves me questioning how long I will maintain my account. The service is useful, but many use it in lieu of premium cable packages. At the price of $20 per month, vs $10 to add HBO to my cable package, it leaves me wondering if Netflix might be pricing themselves too high for their demographic.

Find Netflix’s Press release on the matter below.

New Unlimited DVD-Only Plan at $7.99 is the Lowest-Ever Price Offered; Unlimited Streaming Remains $7.99

LOS GATOS, Calif., July 12, 2011 /PRNewswire/ — Netflix Inc. (Nasdaq: NFLX) announced today it is launching new unlimited DVD-only plans in the U.S. at their lowest price ever– only $7.99 a month for the 1 DVD out at-a-time plan and $11.99 a month for the 2 DVDs out at-a-time plan.

New members can sign up for these plans by going to DVD.netflix.com.
Netflix also announced it is separating its unlimited streaming and unlimited DVD plans in the U.S. to better reflect the costs of each and to give members a choice: a streaming-only plan, a DVD-only plan or the option to subscribe to both.

With this change, Netflix will no longer be offering unlimited plans that include both streaming and DVDs by mail. The unlimited streaming plan will remain at $7.99 a month. The price for getting both unlimited streaming and unlimited DVDs will be $15.98 a month ($7.99 + $7.99).

For new Netflix members, the changes will be effective immediately. For existing members, the new pricing will start for charges on or after September 1.

“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.”

Netflix introduced streaming to its popular DVD-by-mail business in 2007. Since then, membership has climbed from 6 million to 23 million in the U.S. as people have embraced the idea of watching instantly an ever-expanding library of movies and TV shows on the hundreds of consumer electronics devices capable of streaming movies and TV shows from Netflix right to members’ TVs.

About Netflix:

With nearly 24 million members in the United States and Canada, Netflix, Inc. [Nasdaq: NFLX] is the world’s leading Internet subscription service for enjoying movies and TV shows. For US$7.99 a month, Netflix members in the U.S. and Canada instantly watch unlimited movies and TV episodes streamed over the Internet to PCs, Macs and TVs. Among the large and expanding base of devices streaming from Netflix are Microsoft’s Xbox 360, Nintendo’s Wii and Sony’s PS3 consoles; an array of Blu-ray disc players, Internet-connected TVs, home theater systems, digital video recorders and Internet video players; Apple’s iPhone, iPad and iPod touch, as well as Apple TV and Google TV. In all, more than 200 devices that stream from Netflix are available in the U.S. and a growing number are available in Canada.

SOURCE Netflix Inc.

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