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Netflix Raises Prices, Separates DVD and Streaming Plans

by Noah Kravitz | July 12, 2011July 12, 2011 12:30 pm PST

Netflix ButtonNobody ever said it’d be easy at the top. Despite accounting for the lion’s share of all Internet traffic in North America, announcing global expansion plans, and signing high profile deals to produce original content, Netflix still has its fair share of issues to deal with. One of the biggest? The big ticket licensing deals the company has to sign in order to acquire the rights to stream the movies and TV shows eating up all of that bandwidth. Recent predictions put the company’s content licensing fees up around the $1 Billion mark for the coming year.

That money’s gotta come from somewhere, and as of today more of it will be coming from subscribers’ pockets. Netflix announced changes to their rate plans, effectively immediately for new customers and going into effect this September for current subscribers.

The current $9.99 unlimited streaming plus one DVD at a time plan now costs $15.98: $7.99 per month each for unlimited streaming and one DVD at a time. The plans are also available separately, with 2 DVDs at at time (no streaming) set to cost $11.99 per month. For users like me, who’ve been rocking the one DVD plus unlimited streaming package, this represents a 60% price hike. Then again it’s only six bucks a month extra, which is way less than the price of a movie ticket, at least where I live. And compared to your average cable bill? Don’t even get me started.

Still, a 60% price hike is the kind of thing that induces sticker shock on a widespread scale. So what say you? Is $16/month, or $8/month for streaming only, too much to pay? Is Netflix still worth it?

Noah Kravitz

Noah Kravitz mourned the day that Star Castle was replaced in the pizza parlour he frequented as a kid. The sadness ended when he saw an older kid...