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Netflix Separates DVD and Streaming Plans, Raising Prices

Netflix has announced that they are splitting their DVD and streaming subscription plans, so the previous $9.99 per month plan for unlimited streaming and unlimited DVDs (one out at a time) will now become two separate plans, a $7.99 unlimited streaming plan and a $7.99 DVD-only plan (again, one out at a time). So, to retain the previous service level, the price goes from $9.99 to $15.98. The change will happen for existing members on or after 1 September 2011; it goes into place for new members immediately. It seems likely that the price increase is due to increased licensing costs from the studios, but if so, Netflix is doing a poor job of educating customers as to what the real costs are. Netflix customers are largely irate at the change, especially given the weasel words in the blog post and the erratic choice for streamed movies.

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