Netflix Cost for \’Combined\’ Service Increases by 60 Percent

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\"\"Netflix announced changes to their unlimited streaming and DVD-by-mail services today.

Netflix is now offering separate plans for each service that will allow users to choose unlimited streaming or unlimited DVDs (one at a time) for $7.99 a month, or to sign up for both services for $15.98–that\’s a price increase of 60 percent.

Netflix VP of Marketing, Jessie Becker, announced the new plans and the reasons for the change in a blog post. According to Becker, when the company originally introduced its streaming-only plan, it didn’t anticipate the DVD-only service. But since demand continued for their DVD services, he said didn’t make financial sense to offer a rate for both services at only $2 more. Going forward, users will have to make a choice between the two or buy them both.

The price changes are scheduled to go into effect on September 1, 2011 and will not effect current subscribers until then. However, for new Netflix users, these new rates are effective immediately.



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