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Tuesday, July 12, 2011
Netflix Introduces New Plans and Announces Price Changes


Netflix today announced new DVD only plans that will allow subscribers watch unlimited movies and video online and get DVDs by mail.

Netflix new DVD only plans are available for $7.99 a month for its 1 DVD out at-a-time plan and $11.99 a month for our 2 DVDs out at-a-time plan. New members can sign up for these plans by going to DVD.netflix.com.

The company is also separating unlimited DVDs by mail and unlimited streaming into separate plans: a streaming only plan, a DVD only plan or the option to subscribe to both. With this change, the company will no longer offer a plan that includes both unlimited streaming and DVDs by mail.

So for instance, the company's current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming), for $7.99 a month.

The price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). For new members, these changes are effective immediately; for existing members, the new pricing will start for charges on or after September 1, 2011.

"Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs," Netflix Vice President of Marketing Jessie Becker wrote in a company blog post.

In related news, Netflix, and NBCUniversal Domestic Television Distribution today announced a multi-year renewal of their licensing agreement expanding the selection of non-exclusive NBCU film and TV library titles available to watch instantly streaming from Netflix.


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