Netflix announces DVD only plan, stops providing both DVD and streaming plan

Netflix just announced a very important change in their plans. No longer you’ll be able to subscribe to both mailed DVD and streaming using their $8.99 plan, instead you’ll have to decide for either $7.99 streaming only plan, $7.99 1 DVD / $11.99 2 DVDs at a time plans or subscribe to both paying a minimum of $15.98 / month. The move comes as a result of Netflix being forced to cash more and more to acquire content for streaming and it was planned quite a while ago considering the recent interface changes that removed the ability to access your DVD queue from the streaming devices.

The new plans will be announced to existing subscribers over the next couple of days and apparently there is no option for the existing subscribers to keep their current plans. personally, the change doesn’t really affect me since I stopped mailing DVDs months ago, but that means I’ll have to find that last DVD I never mailed back to Netflix and send it to them.

Will Netflix move affect you or push you toward Hulu Plus?

Update: The Netflix website seems to be down for maintenance currently. No doubt to prepare it for the new subscription plans.

Update 2: The Netflix site is back up, a quick visit to your account will show the following message: (I wonder if that means the current users will actually be grandfathered in their existing plans…)

The price of your 1 DVD out at-a-time (Unlimited) plan will change to $15.98 () (plus any applicable tax) a month starting with your next billing period on or after Sep 01, 2011. If you select a new plan in the meantime, you will only be able to return to your current plan at the new price, regardless of when you make the change.

 

Update 3: An here is the Netflix e-mail:

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

   Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
   Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don’t need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.

We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.

–The Netflix Team

Press Release:

New Unlimited DVD-Only Plan at $7.99 is the Lowest-Ever Price Offered; Unlimited Streaming Remains $7.99

LOS GATOS, Calif., July 12, 2011 /PRNewswire/ — Netflix Inc. (Nasdaq: NFLX) announced today it is launching new unlimited DVD-only plans in the U.S. at their lowest price ever– only $7.99 a month for the 1 DVD out at-a-time plan and $11.99 a month for the 2 DVDs out at-a-time plan.

(Logo: http://photos.prnewswire.com/prnh/20101014/SF81638LOGO)

New members can sign up for these plans by going to DVD.netflix.com.

Netflix also announced it is separating its unlimited streaming and unlimited DVD plans in the U.S. to better reflect the costs of each and to give members a choice: a streaming-only plan, a DVD-only plan or the option to subscribe to both.

With this change, Netflix will no longer be offering unlimited plans that include both streaming and DVDs by mail. The unlimited streaming plan will remain at $7.99 a month. The price for getting both unlimited streaming and unlimited DVDs will be $15.98 a month ($7.99 + $7.99).

For new Netflix members, the changes will be effective immediately. For existing members, the new pricing will start for charges on or after September 1.

“Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail,” said Andy Rendich, Netflix Chief Service and Operations Officer. “By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members.”

Netflix introduced streaming to its popular DVD-by-mail business in 2007. Since then, membership has climbed from 6 million to 23 million in the U.S. as people have embraced the idea of watching instantly an ever-expanding library of movies and TV shows on the hundreds of consumer electronics devices capable of streaming movies and TV shows from Netflix right to members’ TVs.

About Netflix:

With nearly 24 million members in the United States and Canada, Netflix, Inc. [Nasdaq: NFLX] is the world’s leading Internet subscription service for enjoying movies and TV shows. For US$7.99 a month, Netflix members in the U.S. and Canada instantly watch unlimited movies and TV episodes streamed over the Internet to PCs, Macs and TVs. Among the large and expanding base of devices streaming from Netflix are Microsoft’s Xbox 360, Nintendo’s Wii and Sony’s PS3 consoles; an array of Blu-ray disc players, Internet-connected TVs, home theater systems, digital video recorders and Internet video players; Apple’s iPhone, iPad and iPod touch, as well as Apple TV and Google TV. In all, more than 200 devices that stream from Netflix are available in the U.S. and a growing number are available in Canada.

SOURCE Netflix Inc.

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