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Netflix hikes streaming + DVD price

July 13, 2011

Netflix has hiked monthly prices for customers who use both its mail and online services, a move that will probably steer users toward its growing Internet streaming service.

It is raising by 60 per cent the monthly price of a plan that lets subscribers watch unlimited movies and video online and get DVDs by mail. US subscribers will pay $7.99 per month to rent one DVD at a time plus $7.99 for unlimited streaming, or a total of $15.98 per month.The previous cost of this plan was $9.99 a month. The changes take effect immediately for new subscribers, and in September for current customers.

The company faces growing costs for postage and says it separated the pricing for mail and streaming services “to better reflect the costs of each and to give our members a choice,” Netflix Vice President of Marketing Jessie Becker said.

Netflix said its $7.99 option for one DVD at a time was its lowest price ever for DVD-only service. The company also said it was creating a separate management team to focus solely on DVDs by mail.

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