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 22,349.59 -9.64 -0.04%
Nasdaq 6,426.92 4.23 0.07%
S&P 500 2,502.22 1.62 0.06%
Treasuries 2.26 -0.02 -0.70%
Data as of 4:03am ET
Company Price Change % Change
Bank of America Corp... 25.02 -0.14 -0.56%
Advanced Micro Devic... 13.30 -0.11 -0.82%
Apple Inc 151.89 -1.50 -0.98%
General Electric Co 24.87 0.12 0.48%
Ford Motor Co 11.84 0.12 1.02%
Data as of Sep 22
Sponsors

Sections

The shutdown, which raised protests from navigator groups, will occur from midnight to noon on on all but one Sunday. More

Facebook's board withdrew a proposal that was the subject of a shareholder lawsuit. As a result, the CEO will no longer head to court on Tuesday. More

When you're making big career decisions, you turn to your mentors and your trusted peers. But how do you find these mentors and trusted peers in the first place? More