New Netflix: More Net, fewer discs
Netflix Inc. will offer its first unlimited streaming-only subscription plan in the United States and raise prices on some of its other streaming and DVD plans, which accelerates the company’s move away from its DVD-by-mail business.
The move helps Netflix’s efforts to eventually phase out sending DVDs by mail, said Gabelli & Company analyst Brett Harriss.
The streaming plan will cost $7.99 a month and the prices for the 1-DVD and 2-DVDs out at a time plans will rise by $1. The 3 DVDs-plan will jump $3 to $19.99, which Wedbush Securities analyst Michael Pachter said will turn away hundreds of thousands of subscribers.
Netflix, which gained success as a DVD rent-by-mail service, ended the third quarter with 16.9 million members in the United States and Canada. It launched its first streaming-only service in Canada in September.