Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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 21,082.95 70.53 0.34%
Nasdaq 6,205.26 42.23 0.69%
S&P 500 2,415.07 10.68 0.44%
Treasuries 2.26 -0.01 -0.49%
Data as of 7:19am ET
Company Price Change % Change
Bank of America Corp... 23.25 -0.11 -0.47%
Chesapeake Energy Co... 5.18 -0.37 -6.67%
Ford Motor Co 10.86 -0.10 -0.91%
General Electric Co 27.49 -0.34 -1.22%
Comcast Corp 40.34 0.01 0.02%
Data as of May 25
Sponsors

Sections

Various big-name sponsors are yanking their dollars away from New York's 2017 Puerto Rican Day Parade amid a controversial decision to honor FALN member Oscar López Rivera. More

Lindsey doesn't know if she should pay off her debt or save up for a house. CNNMoney's Broke No More advice column has some suggestions. More