Well, it was only a matter of time until the prices went up, I guess. Netflix has updated their official Netflix Blog with a blog post (here) that states the following price raises:
First, we are launching new DVD only plans. These plans offer our lowest prices ever for unlimited DVDs – only $7.99 a month for our 1 DVD out at-a-time plan and $11.99 a month for our 2 DVDs out at-a-time plan. By offering our lowest prices ever, we hope to provide great value to our current and future DVDs by mail members. New members can sign up for these plans by going to DVD.netflix.com.
Second, 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. With this change, we will no longer offer a plan that includes both unlimited streaming and DVDs by mail.
Gulp. So, that means those of us who are used to the unlimited streaming and unlimited DVD rentals (with one out at a time) will have to choose between one of the following plans:
Plan 1: Unlimited streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, one out at-a-time (no streaming), for $7.99 a month.
Plan 3: Unlimited streaming AND unlimited DVDs (one out at a time) for $15.98 a month ($7.99 + $7.99).
With licensing fees seeming to skyrocket, this price hike seemed inevitable, albeit a little more pricey than I originally expected.
This is Netflix's "official" reasoning behind the raise in price:
Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. 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. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering.
What do you think of the raise in price? Obviously, we're very much focused on the streaming side of Netflix, but we still loved being able to get a DVD every so often of something that wasn't coming to streaming anytime soon. We'd love to get your input and see how this affects your opinion of the Netflix service.
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