Netflix to Customers: Choose DVDs or Streaming

Or pay more for both, under new pricing plans
By Matt Cantor,  Newser User
Posted Jul 12, 2011 4:53 PM CDT
Netflix Inc. announced that it is launching new DVD and streaming movie plans.   (AP Photo/Paul Sakuma, file)

(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.

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