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.
Some families are outraged at the sums they've been offered by Lufthansa as compensation for the Germanwings plane crash in March which killed 150 people. More
Uber just raised another $1 billion in funding, which values it at nearly $51 billion. More
Fast-food chains that operate in more than 30 locations nationwide are the sole target of a new rule in New York to hike their minimum wage to $15. But consumers and small business owners, as well as some employees, may be the ones to pay the price. More
You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More