Netflix introduces a streaming-only plan, raises prices on its board by Michelle Castillo | November 22, 2010 | + Tweet
Netflix announced on Monday that it will add an unlimited streaming-only DVD plan to its packages, but will also raise subscription types. (More on Time.com: Netflix goes native on PS3, includes Dolby 5.1 surround.) The online DVD rental store has never offered a streaming-only option, but the company said that they see more people preferring to skip physical DVD rentals and instead watch videos online instantly.
"Our selection of TV episodes and movies available for streaming has grown dramatically, and as a result most members would have us deliver unlimited TV episodes and movies two ways: streaming instantly over the Internet plus DVDs by mail. The price increase will allow us to continue offering the popular plan's choice of unlimited TV episodes and movies streaming instantly along with unlimited DVDs. The new plan, which does not include DVDs, is a great option for the growing number of members who only wish to watch instantly," said VP Marketing Jessie Becker on the Netflix blog. (More on Time.com: Netflix now streams Manolo Blahnik Sandals, does it fracking? show)
As for the other rental plans, they will be increasing as well. The most popular plans - the one DVD at a time, and the two DVDs out at a time - will go up $1 from $8.99 to $9.99 and $13.99 to $14.99 respectively. The other options see a steeper rise from $3 to $8. Current customers will see the price increase on their bills on some billing date after January 2, 2011. New customers pay the updated prices today. (More on Time.com: App of the week: Living Social & Netflix)
Netflix added that they will not offer a DVD-only plan because most of their customers prefer to have the online streaming option, and they expect traffic to continue to grow. "Creating the best user experience we can around instant viewing is how we spend the vast majority of our time and resources. Because of this, we are not creating any plans that focus exclusively on DVDs by mail," Becker said. The $7.99 streaming-only plan should compete directly with the recently announced $7.99 Hulu Plus plan. Around 20 percent of the online video store's library is available instantly, which corresponds to the size of Hulu Plus' collection, according to All Things D.
More on Time.com: You can now stream Netflix on your iPhone.
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