Netflix Unveils “Streaming-Only” Subscription Plan

Netflix announced today that they will begin to offer a streaming-only subscription option which will not include DVDs sent to a subscriber’s home.  Netflix also announced that it will raise prices for existing DVD plans.

The price changes come as the company has spent more money on content and has seen users spend more and more time on its streaming service. 

Jessie Becker, VP of Marketing for Netflix wrote in a company blog that Netflix will now offer a new, $7.99 per month plan that lets users instantly watch unlimited TV episodes and movies, streamed via a computer or TV set.  “This plan does not include any DVDs,” Becker highlighted.

As far as the price increases, Netflix said its popular plans that allow one DVD out or two DVDs out at at a time will see their prices rise by $1 a month, to $9.99 and $14.99, respectively.  The 3-DVDs-at-a-time plan will cost an extra $3 per month, rising from $16.99 to $19.99.  The price hikes will become effective in January for existing subscribers and immediately for new users.

The plan is to convince subscribers that the Web-only service is a good deal, even though Netflix streaming only offers about 20% of the company’s physical catalog. Wedbush Securities analyst said, “We expect the majority of Netflix customers to remain on one of its combination plans, resulting in overall higher average revenue per user; on the other hand, the sharp increase in the most popular 3-DVD out plan could drive these subscribers to switch to lower-priced plans.”

I don’t know about you guys, but this sort of rubs me the wrong way – my computer is 4 years old which, admittedly, makes it a dinosaur, but it still works 100% fine, yet Netflix doesn’t support my OS for streaming. That makes this new plan irrelevant to me, and now they’re going to raise my rates for the regular plan even though nothing about it will change?? Seems a weeeee bit unfair if you ask me.


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