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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

Index Last Change % Change
Dow 17,084.49 33.74 0.20%
Nasdaq 4,830.47 19.68 0.41%
S&P 500 2,014.89 1.46 0.07%
Treasuries 2.10 -0.01 -0.43%
Data as of 1:22am ET
Company Price Change % Change
Alcoa Inc 10.26 -0.75 -6.81%
Bank of America Corp... 15.58 -0.17 -1.08%
Apple Inc 112.12 2.62 2.39%
EMC Corp 27.86 0.68 2.50%
Freeport-McMoRan Inc... 13.49 0.03 0.22%
Data as of Oct 9


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