Netflix Confirms That Streaming is the Future By Making DVD Rentals More Expensive

Netflix has introduced a new pricing structure that doesn’t bode well for those that still watch DVDs. Instead of the very reasonable price of $9.99 for unlimited DVDs and streaming content, you’ll now have to pay a nearly doubled price of $15.98/month for the same package.

“First, we are launching new DVD only plans. These plans offer our lowest prices ever for unlimited DVDs – only $7.99 a month for our 1 DVD out at-a-time plan and $11.99 a month for our 2 DVDs out at-a-time plan.”

So, basically, you can now have a 2 DVDs/month plan for the same price as the formerly unlimited streaming/DVDs plan. Doesn’t really sound like a fair trade, does it?

“Second, we are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice: a streaming only plan, a DVD only plan or the option to subscribe to both. With this change, we will no longer offer a plan that includes both unlimited streaming and DVDs by mail.”

Part of Netflix’s initial appeal was that it was cheaper than cable to have unlimited streaming and DVD rentals. With this price change, Netflix gets closer to the basic cable bill that many people left for Netflix a long time ago.

The new plans go as follows:

“Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming), for $7.99 a month.

The price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). For new members, these changes are effective immediately; for existing members, the new pricing will start for charges on or after September 1, 2011.”

Netflix sees the DVD rental business as something worthy of its own pricing structure. So, instead of a $2 add on, DVDs will become just as (and more) expensive as streaming.

Bad move, Netflix? What do you think? Does this affect you, or have you switched over to streaming only anyway? Let us know in the comments.