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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