Netflix Raises Prices - Internet Explodes

Posted Wed Jul 13, 2011 at 09:30 AM PDT by Dick Ward

Streaming and disc based plans will now be separate. If you want both, you'll be paying for both.

If you've been online at all yesterday or today you've probably heard the news. Netflix is changing its price structure. The way it's going to work from now on is that you'll be able to choose DVDs, Streaming, or both. Unlimited streaming runs $7.99, 1 DVD at a time costs $7.99 and the combo costs $15.98. Blu-ray access (aka the good stuff), as usual, costs extra.

It's a big increase for the folks that want both DVDs and streaming video - from $10 to $16. It's an incredibly steep rate hike, and for many people, that's enough to cancel their subscriptions. For others, it's the last straw on physical media and they've switched to streaming only.

This move is almost certainly a way to try and address the rising costs associated with streaming content. What started out as a very inexpensive way to get content to consumers has increased in cost dramatically.

Source: Netflix Blog

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Tags: Industry Trends, Netflix (all tags)