Netflix raises prices, offers streaming-only option

chart_ws_stock_netflixinc.top.pngClick chart to track Netflix shares. By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- Netflix is raising prices on DVD rental plans, but will offer a new option that relies exclusively on streaming video, the company announced Monday.

The new plan, priced at $7.99 per month, allows customers to instantly watch unlimited TV episodes and movies streamed to a computer or TV. The option includes no DVD rentals, and will take effect immediately.

Meanwhile, Netflix (NFLX) is raising prices by $1 a month on its two most popular plans -- the one and two-DVD at a time options, which will now be priced at $9.99 and $14.99 per month.

Price increases are even steeper on plans that allow three or four simultaneous rentals. The three-DVD price will increase from $16.99 to $19.99, and the four-DVD plan moves to $27.99 per month from $23.99.

"We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet," Reed Hastings, Netflix co-founder and CEO said in a statement.

While Netflix continues to ramp up the number of titles available to stream, not every program is available, a tripping point for users who prefer the instant streaming service, but want access to the entire Netflix library.

Netflix shares are up more than 200% since January, and rose nearly 8% in early trading Monday.

Hastings was recently named Fortune's Businessperson of the Year. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,121.29 14.59 0.09%
Nasdaq 4,571.62 0.98 0.02%
S&P 500 1,999.80 -0.22 -0.01%
Treasuries 2.37 -0.02 -0.75%
Data as of 1:57pm ET
Company Price Change % Change
Bank of America Corp... 16.23 -0.10 -0.61%
Apple Inc 102.07 1.18 1.17%
Facebook Inc 75.05 -0.91 -1.19%
Yahoo! Inc 38.21 0.42 1.11%
Pfizer Inc 29.49 0.28 0.96%
Data as of 1:42pm ET

Sections

Standard General, largest investor for troubled electronics retailer, in talks to give RadioShack cash infusion it needs More

If we want to narrow the wealth gap, we need a better path to homeownership for low-income families. More

Alibaba reported a monster threefold increase in profit ahead of its highly anticipated initial public offering. More

Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More

Mary Fallon, from Durham, Maine, is a mother of three children, two dogs, 25 chickens and a flock of 22 sheep. Here are journal entries from a day in her life. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.