Netflix raises subscription rates for combo DVD-streaming plans

Even though it is the leader in offering streaming movies and TV shows in the US, Netflix has decided to increase the rates for getting both a streaming video plan and a DVD mail order plan. In a post on the Netflix blog site today, the company has also announced a new DVD rental plan that for the first time doesn't include a streaming video plan.

For people who just want to get new movies and TV shows, Netflix is now offering the new DVD rental only plans. Customers can now get one DVD mailed to them at a time for just $7.99 a month or two DVDs at a time for $11.99 a month. The streaming only video service also stays at $7.99 a month. However Netflix has decided to no longer offer a plan that offers both streaming video and DVD rentals for a reduced rate. If you want unlimited streaming video plus a one DVD rental plan, you will have to purchase both the full $7.99 a month streaming plan and the $7.99 a month DVD rental plan. That means that customers will now have to pay $15.98 to get both which is a 60 percent increase from previous plans.

On its blog site, Netflix states that when it launched its streaming only monthly plan it did not think it would also want to offer a DVD only plan as well. However it added, "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." The new rate go into effect immediately for new Netflix users. Existing users will have their rate change on September 1, unless they change their account.

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29 Comments

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They just need to add ALL the damn titles they have to streaming.... and add better quality for it. I have the bandwidth (YES COMCAST - ALL 250 DAMN GIGS WORTH) a month to do this. I'll burn up all I can right up to that damn cap each month..don't give a damn!! But as for content...yeah they don't have enough on streaming. I can watch the first LOTR on streaming but when I go to watch the next 2 they are Disk only... wtf!!

This really blows. I'm on the 2 DVDs plus unlimited streaming plan for $14.99. My new plan will be $19.98 per month to get the same thing, or I can downgrade to the 1 DVD at a time plan and keep streaming and still wind up paying a buck more per month.

On the other hand, I've still got 2 DVDs from a month ago that I haven't watched so this may just be the motivation I needed to finally drop the DVD plan and just go streaming only.

metal_dragen said,
This really blows. I'm on the 2 DVDs plus unlimited streaming plan for $14.99. My new plan will be $19.98 per month to get the same thing, or I can downgrade to the 1 DVD at a time plan and keep streaming and still wind up paying a buck more per month.

On the other hand, I've still got 2 DVDs from a month ago that I haven't watched so this may just be the motivation I needed to finally drop the DVD plan and just go streaming only.

I've been on the 1 DVD / Unlimited streaming plan for about a year, in that time I've managed to get about 50+ DVD movies, as the mail turn around for netflix is EXTREMELY fast. If only gamefly could learn a thing or two about how to handle mailing; but I digress.

I think you probably wont notice much difference between the 1 and 2 disc plan. I find it mind boggling that they offer an 8 disc plan, as the only reason I can think of to have 8 discs out at a time would be if I were making mass copies of movies.

And with more people wanting to go with the "streaming" service...this is why cable providers and internet providers are wanting to impose cap limits on users like ATT U-Verse and Verizon.

It's almost like a no win situation....you pay more for streaming movies...but if you go over your cap...you have to pay more that way.

Either way...you are getting "fee"d to death.

texasghost said,
And with more people wanting to go with the "streaming" service...this is why cable providers and internet providers are wanting to impose cap limits on users like ATT U-Verse and Verizon.

It's almost like a no win situation....you pay more for streaming movies...but if you go over your cap...you have to pay more that way.

Either way...you are getting "fee"d to death.

One solution is cancel all video services and go read free books at the library. That way you don't get "fee'd to death".

KingCrimson said,

One solution is cancel all video services and go read free books at the library. That way you don't get "fee'd to death".

They still have libraries?

KingCrimson said,

One solution is cancel all video services and go read free books at the library. That way you don't get "fee'd to death".

They still have libraries?

I'd really rather to prefer only streaming, problem is the selection just isn't there yet. It's not the extra wait, it just isn't there at all.

I would like to see only a $3.00 increase for existing users and new users get the new
price. I like Netflix and $16 isn't a lot, but if they increase it any higher. I'll drop them
and try Amazons or hulu plus.

I might even decide to watch my TV and start buying DVDs and Blue-rays again.

I was grandfathered and paying $19.99 for 4-DVDs and streaming. I got an email from Netflix saying I will be paying the full $29.98. All previous price increases included grandfathered price differences. No longer. This is something I haven't seen published in any article about this price increase. Grandfathered plan holders have the highest increase of all. I started my subscription in January 2000.

Seems pretty silly not to at least offer a bundle deal for the two services... even if it's only a couple of dollars. I've been thinking about canceling my subscription due to lack of real active use lately and this news just pushed me to do so come September.

Kyle A said,
Seems pretty silly not to at least offer a bundle deal for the two services... even if it's only a couple of dollars. I've been thinking about canceling my subscription due to lack of real active use lately and this news just pushed me to do so come September.

Agreed... You should save $1 off each service or something if you get both.

spenser.d said,

Not everyone who visits Neowin visits the forums. Its frontpage worthy news so why wouldn't they post it?

+1

I remember reading not to long ago, maybe 2 or 3 months, about them wanting more people to use only streaming, and less DVD rentals, so I kind of saw this coming when that did not happen. Not a loss personally, as I never did the DVD thing, just the streams, but I can see a lot of people getting rather upset.