Los Gatos, Calif. – Netflix (NASD: NFLX) on Monday introduced a new
"streaming only" plan in the U.S., where consumers can now pay $7.99
for a plan that lacks physical DVD rentals but offers unlimited online
streaming of movies and TV episodes. The company also announced a price hike on
plans that include DVDs: for those plans that allow one DVD out at a time per
month, the subscription price will increase by $1; for three DVDs out, the
price will jump $3 per month to $19.99, and those who can have eight DVDs out
at a time will pay $8 more per month ($55.99).
"You might also wonder why
we haven’t introduced a new plan that includes only DVDs by mail. The fact is
that Netflix members are already watching more TV episodes and movies streamed
instantly over the Internet than on DVDs, and we expect that trend to continue,"
the company said in a blog post.
Netflix launched a streaming-only service in Canada earlier this year. The new $7.99 price point for streaming-only matches
the new reduced-price of Hulu Plus, the TV episode streaming service.
Currently, Netflix counts around 20,000 titles available for streaming,
compared to over 90,000 offered on DVD.