Netflix to Customers: Choose DVDs or Streaming

Or pay more for both, under new pricing plans

By Matt Cantor,  Newser Staff

Posted Jul 12, 2011 4:53 PM CDT

(Newser) – Alert to subscribers: Netflix is making big changes to its pricing structure. The movie rental company is separating its DVD subscriptions from its streaming-content plans. Subscribers will have a few options, the company’s blog notes: They can pay $7.99 a month for one DVD at a time, with no streaming. They can pay $7.99 a month for unlimited streaming with no DVDs. Want both? You’ll have to pay for each in full, at $15.98.

The company also is offering two DVDs at a time for $11.99 a month. New members will pick from the new options right away; for existing members, they take effect Sept. 1. The blog says the old plan offering DVDs for an extra $2 with unlimited streaming “neither makes great financial sense nor satisfies people who just want DVDs.” GigaOm offers another explanation: “By forcing subscribers to choose, it’s likely betting that most will go streaming-only, thereby lowering the infrastructure costs of supporting them.” The news comes as Netflix faces far higher licensing costs, notes CNN.

Netflix Inc. announced that it is launching new DVD and streaming movie plans.   (AP Photo/Paul Sakuma, file)
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