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.
Mining companies are cutting jobs as China's economic slowdown causes prices to tumble. More
Donald Trump finally gives more detail on his economic plans. More
The Galaxy Note 5 costs about $700 in stores. But how much does it actually cost Samsung to make? More
Smartphones are expensive. So using the one your employer gives you can save a lot of money. But in exchange you may be forfeiting control and privacy. More