In a bold move Tuesday, internet video giant Netflix sent notices to its 23 million subscribers that its pricing plans are changing. The move, according to Netflix, allows the prices to better reflect the cost related to the different plans.
Consumers who want both internet streaming and DVDs from Netflix will have to make a choice. The plans that currently allow unlimited internet streaming with a choice of 1, 2, or 3 DVDs at a time, will be split into different plans with new prices. Consumers will be able to choose streaming only, DVD only, or both.
Unlimited internet streaming will remain at $8 per month. It’s the DVD plans that have changed. One DVD at a time with no internet streaming is also $8 per month. Two DVDs at a time with no internet streaming is now $16 per month. Three DVDs at a time with no internet streaming is now $24 per month. Consumers who want both unlimited DVDs and unlimited internet streaming will have to add an extra $8 per month to their DVD plans.
For current Netflix subscribers, the price changes will take effect September 1st. New subscribers to Netflix will feel the effects immediately upon subscribing.