Netflix raises subscription prices
Netflix Inc. is raising the prices of some of its subscription plans and is shifting its focus to streaming video as more members move to the Internet to watch movies and television shows. Its shares surged more than 7 percent in trading Monday.With high-speed online access now becoming a household staple and various gadgets making it easier to connect high-definition TVs to the Web, Netflix is realizing it needs to evolve as Internet streaming goes mainstream.
The company based in Los Gatos, Calif. previously announced that more of its members are watching more content streamed over the Internet than on DVDs. To deal with this shift, Netflix says it will spend more this quarter to license streaming content than to buy DVDs.
Netflix said Monday that its subscription plan for unlimited movies and TV shows streamed over the Internet and unlimited DVD deliveries — with one DVD out at a time — will increase by $1 a month to $9.99. Prices for other plans allowing for more DVDs out at a time are also going up.
Existing members will incur the price increases in January, while people who are new sign-ups will face the higher prices immediately.
Even with the price increase Netflix remains affordable. To accomodate those who only want to view streaming content over the Internet a new plan is being introduced.
Netflix is also launching a $7.99 a month streaming-only plan in the U.S. to accommodate the online shift. It already has a streaming service in Canada for a monthly fee of 7.99 Canadian dollars ($7.86).
“We are now primarily a streaming video company,” co-founder and CEO Reed Hastings said in a statement.
Now all Netflix has to do is increase it’s “instantly” library. While I enjoy the streaming option it is frustrating that there is a limited library compared to the DVD/Blu-ray library.
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- Netflix raises prices for some subscription plans (sfgate.com)
- Netflix More Fully Embraces Streaming Video (dailyfinance.com)
Posted on November 23, 2010, in Business, Internet, PC, Technology News, Video and tagged DVD, Los Gatos California, Netflix, Reed Hastings, Streaming media, Television program. Bookmark the permalink. Comments Off on Netflix raises subscription prices.