Netflix Launches $7.99 Streaming-Only Plan in U.S., Jacks Up DVD Plans

Paul Lilly

Netflix has been around for over a decade and began life as a video rental-by-mail business, but it's the company's streaming service that's proving to be its bread-and-butter business model. Starting today, Netflix is offering a U.S. streaming-only subscription plan for $7.99/month.

"We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet," said Reed Hastings , Netflix co-founder and CEO. "Today's action reflects the tremendous customer value we've injected into streaming from Netflix, our initial success with a pure streaming service in Canada for $7.99 a month, and what our U.S. members tell us they want."

Not a bad deal for those interested only in streaming content, though for everyone else, prices are going up . Both the 1 DVD and 2 DVDs at a time rental plans are increasing by a $1/month, while the rest are seeing higher price hikes. Here's how it breaks down:

  • 1 DVD: $8.99 --> $9.99
  • 2 DVDs: $13.99 --> $14.99
  • 3 DVDs: $16.99 --> $19.99
  • 4 DVDs: $23.99 --> $27.99
  • 5 DVDs: $29.99 --> $34.99
  • 6 DVDs: $35.99 --> $41.99
  • 7 DVDs: $41.99 --> $48.99
  • 8 DVDs: $47.99 --> $55.99

In other words, prices are going up $1/DVD for all except the 2 DVDs plan, which rises by $0.50/DVD. The only plan not seeing a price increase is the 1 DVD (limit 2 per month) plan without unlimited streaming service attached, which will remain $4.99/month.

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