Netflix is launching new, unlimited DVD-only plans in the U.S. but as a part of that move, it’s scrapping unlimited plans that include both physical DVDs and online streaming. Continue reading after the jump.
Tat WZA
Subscription movie rental service Netflix said Tuesday that the changes are meant to “better reflect the costs” of each option. The changes cut prices slightly for customers who only want DVDs, but streaming video will now cost extra. Customers who want both options will essentially have to pay for two plans, raising their overall bill.
Netflix’s unlimited streaming-only plan will remain at $7.99 a month, while its “1 DVD at a time” plan will also cost $7.99. That means customers who want both streaming and DVDs will have to shell out at least $15.98 a month.
That’s a big jump from the $9.99 a month customers currently pay for a plan that offers unlimited streaming plus 1 DVD at a time.
Netflix’s announcement sparked an immediate and loud backlash from customers. By Tuesday afternoon, more than 3,000 comments filled the Netflix blog post announcing the changes — most overwhelmingly negative. Hundreds of commenters said they would cancel their plan, some in favor of rival streaming offerings from Hulu and Amazon. Others planned to stock up on DVDs from rental kiosk Redbox, which said earlier this year that it is working on its own streaming service to take on Netflix.
“You’ve decided to raise customer rates during a period of economic downturn, when people are struggling to pay for basic necessities,” another customer wrote. “You’re forcing me to pay more for products and services I’ve paid for loyally for quite a while now. You’re really, REALLY making me reconsider this business relationship.”
