Netflix is Raising (and Lowering) Prices

Netflix iPhone1 1024x820 Netflix is Raising (and Lowering) Prices

If you are a current Netflix customer, beginning September 1, in order to continue both unlimited streaming and unlimited DVD’s, your price is going to increase significantly. However, if you find yourself not watching many DVDs anymore, or if that Netflix DVD has been sitting on top of your TV for weeks, changing to a streaming only plan will save you money. At our house, we currently get one DVD at a time and unlimited streaming for $9.99/month. If we don’t change plans, our rates will increase to $15.98/month in September.

What is Netflix up to? Netflix is separating their DVD plans from the streaming plans. I remember when Netflix first added streaming to their DVD plans (we’ve been a customer since early 2003). It felt like we were paying for the DVDs and the streaming was FREE .. and it WAS like that. They added streaming at no additional cost.

Netflix is preparing for significant cost increases. Their streaming content licensing costs are expected to increase from an estimated $180 million in 2010 to nearly $2 billion in 2012. So now they must increase their revenue, and treating DVD and streaming plans separately is how they’re planning to do it.

Netflix Mailer1 943x1024 Netflix is Raising (and Lowering) Prices

I looked at our recent DVD rental activity, and so far we’ve only watched 3 DVDs from Netflix in 2011. That’s 3 DVDs in over 6 months! In 2010 we watched only 20 DVDs. So, we’re planning to switch from our $9.99 old plan to the new $7.99 streaming only plan. If your viewing habits are the opposite of ours and you only need DVDs and do not ever stream content, you can also go to a $7.99 plan that includes 1 DVD at a time, or $11.99/month for 2 DVDs at a time (both without streaming privileges).

Other DVD AND streaming plans are 2 DVDs at a time for $19.98/month, 3 DVDs at a time for $23.98, and 4 at a time for $29.98. One little known plan is a 1 DVD at a time, but with only 2 DVDs allowed per month for $4.99. So if you rarely get DVDs, but still want the ability to, 2 DVDs per month and unlimited streaming would set you back a total of $12.98/month.

So, what will it be? Will you adjust your plan? Stick with the same plan and suck up the extra charge? Leave Netflix all together and run to Hulu Plus and Redbox? We’d love to hear your comments!

Comments

  1. Tonya says:

    Thanks for the info! We have not received anything in the mail about this yet. Have to think about this one since we get DVD’s (one at a time) and stream here as well as our college-aged son who lives in another house with friends is able to stream at his house on our plan as well.

    Reply
  2. Jamie says:

    We’ll probably drop down to streaming only, and hit up Redbox for newer releases. No sense paying an extra $3-6/mo to Netflix when we usually only go through 2 physical DVDs a month.

    I’ve heard a lot of people comment that the extra gas money/time to get to a Redbox DVD would make people crawl back to Netflix, but there’s one a five minute bicycle ride from our apartment, so I think it would be worth it to us to drop it.

    Reply
  3. kate says:

    If you go to the account management section, you’ll see that they do not allow you to select unlimited streaming and two DVDs per month. Would be perfect for a lot of us though.

    Reply
  4. Julie says:

    2 DVDs is available. You actually have to subscribe to two plans one for the unlimited streaming and one for the number of DVDs you want each month. We do a lot of streaming, but on multiple devices at the same time, so at a minimum we need to go to the 2 DVD plan in order to be able to watch on two devices at the same time. They only allow one device for each DVD each month, so if you want to do streaming only, you will only be able to stream on one device simultaneously. In our large family this doesn’t really work, and we choose Netflix over cable, so this is still significantly less expensive.

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  5. Allison L says:

    That is our plan as well …. streaming only. We have three Redbox locations within a 3 mile radius of our house, one in the Walmart we go to quite often.

    Reply
  6. DorthyM says:

    We don’t have cable and although we do get the occasional Redbox or Blockbuster dvd, I think for now we are going to suck it up and continue with Netflix and pay the few extra dollars. We currently get one dvd at a time and unlimited streaming. For now this is the entertainment our budget allows and I’ve been happy with their service.

    Reply
  7. Tonya says:

    Our plan is to switch to DVDs only. The three of us at home take turns getting one at a time that we like. Our kids (one at home, one out of the home) may opt to add streaming to our plan (but they get to pay for it themselves).

    Reply
  8. Jess says:

    I had 1 DVD at a time, and streaming. I fully canceled as soon as I got the email notifying me of the price hike.

    Reply

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