Netflix Raises Price of DVD and Online Movies Package by 60%2011-07-13 06:43 by Daniela
Tags: Netflix, DVD
Netflix Tuesday told its members it was raising prices effective Sept. 1, when it will no longer offer its cheapest package of $9.99 per month for unlimited streaming and one DVD at a time by mail. Instead, subscribers who want that combination will have to pay a total of $15.98 a month — $7.99 for Netflix Instant streaming and $7.99 to receive discs in the mail.
The company is hiking its monthly rates as much as 60% for subscribers who opt to rent DVDs through the mail as well as stream video over the Internet. The changes take effect immediately for new customers and in September for existing ones.
Netflix users stormed the streaming video and DVD rental services' blog and Facebook page by the thousands on Tuesday to criticize the new pricing structure. However, several Hollywood studios were pleased by the new prices. The higher prices should help address concerns that the service was undervaluing studios' content and encouraging consumers to avoid options that are more profitable for the studios, such as video-on-demand rentals and Blu-ray purchases.
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