Netflix splits off streaming, changes pricing

Netflix splits off streaming, changes pricing

Have a Netflix subscription you enjoy for DVDs and iPhone, iPad, or Apple TV streaming? Well they've just announced they're splitting your physical media from your online content, and changing the pricing on you as well. The new DVD-only plans start at $7.99 for 1 DVD a month. Unlimited streaming remains $7.99 but if you want both unlimited DVDs and unlimited streaming, it'll cost you $15.98 ($7.99 for each, no combo discount).

New members get the new pricing immediately, existing members get it September 1.

“Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail,” said Andy Rendich, Netflix Chief Service and Operations Officer. “By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members.”

I'm guessing there won't be a lot of happy Netflix users following this announcement. Could be worse though, perpetually myopic Hollywood could force them to raise the prices for streaming -- or simply deny Netflix more content -- in the future.

Which plan will you be getting?

[Netflix PDF]

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Rene Ritchie

EiC of iMore, EP of Mobile Nations, Apple analyst, co-host of Debug, Iterate, Vector, Review, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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Reader comments

Netflix splits off streaming, changes pricing


They can go f**k themselves with this increase. Most of the sh*t to stream is old anyways. Been watching foreign and indie movies most of the time. Even the TV shows are outdated so why would I pay double for something I hardly use in the first place. Everybody is acting like we have money coming out of our a$$es. I am canceling that shit ASAP.

They already have such limited titles I'm thinking this is a good time to drop
Netflix. I bet 70% of the things I search Netflix for aren't streamable let alone on DVD.

I currently have the $9.99 streaming and DVD plan. No more. I'm canceling both. I don't tolerate gouging, and that is what Netflix is doing with the massive price increase.

What's a DVD? LOL All I do is stream so no biggie to me. I'll stick with my streaming plan

So, what do you do if what you want to watch isn't on streaming? You know, like the majority of the movies out there?

Sara July 20, 2011 I cenclh my teeth in my sleep so I also have a mouth guard, which I hate. I think you know this but another random fact is my gall bladder was removed when I was 20

Is it 7.99 for 1 DVD a month, or 7.99 a month for 1 DVD at a time? If the former, that is bogus. Just redbox it, or buy one haha.

For a while there I was really pleased with Netflix service. However, I am no longer seeing as many good movies and I had no access on my Android tablet. I may not keep my subscription much longer.

Know what I think is funny? How a small monthly increase can bring out the worst in people. I pay $9.99 a month for streaming+1 DVD at a time, so this is... a $6.00 increase over the previous plan? IF you pay attention to the news, there's a large licensing hassle where it's the Media Moguls gouging these types of services for more money. What else did you expect???
We average at least an 10 hours a week streaming (between everyone in the household), plus we go through about 3 DVDs a week. I couldn't match that price with Redbox, and I have the added benefit of no late fees, not having to get back out in the heat, AND having access on my iPhone wherever I am.
Geez people, really!? I mean yes, it's a pricing increase, but... REALLY!?

For people on the 1 DVD + streaming plan it's a 60% increase. Would you find a 60% increase in cost acceptable from any other of your monthly service providers? Because I know I sure as hell wouldn't.
I'm also going to be changing to the "go fuck yourselves, Netflix" plan after August. $10/month for one DVD and a bunch of crappy shows to stream is fine, but $15.99? No thanks.

I will be considering either doing without and/or a hulu redbox combo. I still need to crunch the numbers. Plus I am an Amazon prime customer so I will finally take a look at their streaming

It is not just the price hike, it is the reduction of the discount for having both services and the SEVERE REDUCTION of available titles to stream.

I don't get why everyone is in such an uproar about it. Still a hell of a lot better than getting gouged at the counter by your local big box rental store. Most people stream their media now for the most part anyways.. I don't think 8 bucks for unlimited streaming is a good price.

Before local Blockbusters closed, we could get ANY dvd IMMEDIATELY. So I'm not sure that was a good comparison.

I agree! Around here to rent dvds from family video or block buster are still over 5 bucks per disc. Red box is a dollar a day. I think netflix is still a better choice considering you're not limited on your streaming and you can watch 50 movies a week and still only be paying 8 bucks.
I'd like to see somebody watch or rent that many movies through one of the other retailers for that price.

in an econmic recession and people losing there jobs,home and everything else the last thing they need is higher pricing,pretty soon people will be losing there sanity and then world watch out!

I am so furious with Netflix.....they kept the prices good till they put competitors out of business. My husband and I have been big proponents of Netflix and bought Roku machine and six months of Netflix for our three kids for Christmas (even got a DVR for his elderly brother, so he could watch old TV shows). On September 1, 2011 (with taxes), our Netflix cost will increase 77.8% from Sept 1, 2010, which can be called nothing but GREED! Two increases within one year and for such an outrageous amount will definetly "number" my days with my husbands favorite servicehere are many folks out of work with families, who can't take their kids to the movies, this has been a wonderful service for them. With limited income and the cost of cable companies, I don't know what we can do. We incouraged our friends to get this great service, now I feel guilty. I think Netflix will lose many customers over this. Bad move Netflix.

First of all, streaming on Netflix blows. I have been a long time Netflix user so when they added streaming it was great even if the titles weren't very good because it was free. Even a small price increase is fine but this really blows. I'm definitely going to cancel streaming and probably cancel my 1 dvd at a time. I'll just stream PPV to my PS3 via VUDU. This is Apple's chance to come up with a decent streaming plan and blow Netflix away. They have the titles all they need is a good subscription plan and I'm there.

I suspect that Netflix is getting hit either on the licensing side or the streaming side for data. I find it hard to believe that their other expenses suddenly skyrocketed. They probably feel that now there's no real official competition + the ISP's folding and promising to cut people off that are downloading illegally, they can get away with it.
I think this will hit them hard. Personally, I took the opportunity to cancel my 3 dvd subscription I had for years. While I've enjoyed it for years, the reality is I don't need it. Plenty of other things out there to occupy my time with (like listening to TiPB podcasts!).

No one has even commented on the fact that some of the newer movies Netflix did have have dropped off the streaming list. The Sony movies are gone. So let's see...increase price, decrease selection...
Yup, I'm with the irritated and canceling crowd. What they are doing is too much. And I wouldn't be the least bit surprised if they lose other movies for the same reason they don't have Sony any more.

They even dropped streaming of Deadliest Catch, including the 1st season that was like 5 years ago.

I was grandfathered and paying $19.99 for 4-DVDs and streaming. I got an email from Netflix saying I will be paying the full $29.98. All previous price increases included grandfathered price differences. No longer. This is something I haven't seen published in any article about this price increase. Grandfathered plan holders have the highest increase of all. I started my subscription in January 2000.

Yup, I'll be dropping Netflix come Sept 1st. There are quite a few Redbox locations within a 3 min drive from the long Netflix!

This is an outrageous price hike. I'm especially offended that there isn't a discount if you want both streaming and DVDs. It's not like anyone is going to use both equally. The streaming is nice sometimes when I'm not at home, but the selection is way too limited to consider streaming exclusively. If this policy is still in place by September, I'll definitely be cancelling streaming, and considering other (non-netflix) options for DVDs.

I enjoy streaming to my iPhone, but like others have said, the offerings are very limited. When Netflix increased pricing a few months ago, I dropped the physical DVD. I gather that they're now responding to increased licensing fees from movie studios. However, as reflected here, the consumer base will not tolerate regular and steep price increases. Time for the Netflix management team to find a revenue sharing plan that will allow them to keep costs low. Otherwise, the darling "start-up that could" will face the wrath of the very price conscious consumers who built the company's success.

I'm going to cancel the DVD portion. No grandfathered benefits anymore and I can find pretty much any movie online anyways. Will keep the streaming however but I foresee Netflix losing a lot of money next quarter and beyond.

People are being really unfair to Netflix here. Yes, price hikes suck, but the other half of the story is the contracts with the studios are coming up for renewal and Hollywood is looking for a HUGE payout, possibly as much as 2 Billion dollars. As usual, the studios are shortsighted, always looking for a money grab

Netflix sends us these marketing materials to give our friends and family "free? trials" of their services and up to this point now kickback to selling an up to this point awesome service. Then then decide to gauge their users with an absolutely outrageous price increase.

I understand why they have to do this, the studios have been fighting them on pricing and availability for years, but they could at least not pretend their customers are stupid. “Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail,” right, that's why you're hiking the price of the plan that had both. I'm canceling Netflix, I'd been planning to cancel my HBO subscription once Game of Thrones ended but maybe I'll keep that instead.

I will be cancelling. It doesn't matter that I can afford it. Its the fact they're doubling the price for the same service. I can't justify the price. Poor move on Netflix' part.

haha netflix the new block buster. I'll be dropping them in September unless they do streaming on all movies and get same day release.... not going to happen.

reason why netflix is cheaper then blockbuster is because you have to wait 30days maybe even more to get a new release. Plus this is only for 1 video what is it for 2 or 3 movies. 60% increase is dramatic. someone is getting greedy.

Looks like I will be cancelling my service. Netflix has raised rates by over 70% over just the past year or so. Not only that, the selection on their streaming is VERY poor and most movies take YEARS to get there. No way it is worth their new asking price.

So insulting! All of the broadband and data caps recently imposed have a direct correlation to Netflix hooking us in, and this is how they repay our loyalty!

Bogus. I'm definitely dropping the DVD portion. Will probably drop the streaming too. It's just the principal of a 60% fee hike with no grandfathering of existing clients. That's just a giant F.U. to their loyal customers. The Netflix stock is at an all time high and jumped 5% on this news, so I guess they don't give a shit what we think. Most people on automatic billing won't even bother to do anything about it, so they probably know that less than 10% will leave and they will get 60% higher prices from the remaining 90%.

My wife and I make a combined income of $200,000 a year. We'll still be dropping Netfilx. It's the principle, not the actual increase, that has led us to this decision. Here we come, Redbox. Sorry we left ya.

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