The convenience of home entertainment is about to get a little pricier. Netflix Inc. will raise by 60 percent the monthly price of a plan that allows subscribers to watch unlimited movies and video online and also get DVDs by mail. On Tuesday,July 12, 2011, it was announced that the new pricing system will soon go into place.
Customers who want both services will now pay $7.99 per month to rent one DVD at a time. That is in addition to $7.99 per month for unlimited streaming for a grand total of $15.98 per month. It was formerly at a cost of $9.99 per month for both services together.
“We are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice: a streaming only plan, a DVD only plan or the option to subscribe to both,” Netflix Vice President of Marketing Jessie Becker wrote in a company blog post.
“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,” Becker wrote.
Netflix did not respond on Tuesday when requests were put forth for a comment.
A timeframe was announced as new customers to Netflix will see the changes immediately while current customers will see it start in September.
Unlimted DVD-only plans will cost $7.99 for one at a time and $9.99 for two at a time.
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