Netflix separates DVD plans from online streaming

Netflix separates DVD plans from online streaming

July 12th, 2011 by Associated Press in News

In this file photo made July 20, 2010, a Netflix customer holds up a movie in Palo Alto, Calif. Netflix Inc. announced Tuesday, July 12, 2011, it is launching new unlimited DVD-only plans in the U.S. at their lowest price ever- only $7.99 a month for the 1 DVD out at-a-time plan and $11.99 a month for the 2 DVDs out at-a-time plan.(AP Photo/Paul Sakuma, file)

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SAN FRANCISCO (AP) - Netflix is raising its prices for the millions of subscribers who use the service to rent DVDs through the mail and watch video over the Internet.

Under rates introduced today, households that want both DVDs and Internet streaming will have to buy separate plans totaling at least $16 per month. It's effective immediately for new members and Sept. 1 for existing subscribers.

Netflix Inc. had been including both options in a single package that started at $10 per month.

The $8 monthly price for only Internet streaming remains unchanged.

This marks the first time that Netflix hasn't bundled online streaming with its DVD-rental plans since it began sending video over high-speed Internet connections in 2007. Internet streaming provides more immediate gratification, but typically doesn't include the latest releases.