Netflix Announces Price Hike, New Subscription Plans

Netflix Announces Major Price Hike, Revamps Plans

Netflix is restructuring its pricing model.

Customers can kiss goodbye the service's $9.99 monthly unlimited DVD-rental and streaming combination plan. Netflix will now separate DVD and streaming services into two plans, each priced at $7.99. A combo plan will still be available, but at an increased rate of $15.98 a month.

There will also be a standalone DVD rental plan that lets the user check out two discs at a time for $11.99 per month. The $7.99 DVD rental plan will let users check out one title at a time.

"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, according to a company press release published on Tuesday. "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."

When does the changeover take place? Immediately for new users, according to a post on the Netflix Blog. Existing users will have until September 1 to select a new plan. You can also change your plan now by visiting your Netflix account and retooling your subscription settings.

With over 24 million Netflix subscribers in the U.S. alone, there's bound to be some hoopla over this markup for the unlimited combo plan.

The company last increased the cost of its unlimited DVD and streaming plan in November of 2010. That previous markup brought $7.99 unlimited streaming up to $9.99 with the addition of DVDs-by-mail.

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