Netflix Pricing Plans Change Thursday: How To Prep For The Price Increase

The day of reckoning is finally upon us: Netflix will change its prices Thursday, September 1.

In July of this year, Netflix announced, to total shock and disbelief, that it would be doing away with its popular $9.99-a-month DVD rental and unlimited streaming plan, separating these two options for good. A plan that lets you rent one DVD at a time is now $7.99 a month, while unlimited streaming will also cost you $7.99 a month. If you want both one DVD at a time and unlimited streaming simultaneously, you will have to shell out $15.98 per month. The pricing change goes into effect on Thursday and you'd better watch out you don't actually get charged more than you'd hoped: those who currently subscribe to Netflix's outgoing $9.99 per month plan and enjoy DVD rentals and unlimited streaming and take no action before September 1 will be billed for the $15.98 combined option.

Netflix sent an email to customers with the ten dollar plan with the following instructions:

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

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

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

It remains to be seen how the new pricing will affect membership, and if there will truly be masses fleeing the subscription service (a "Netflixodus"). A July survey of 1,100 current Netflix users by Wedbush Securities found that 22 percent were planning to leave, while a TDG survey warned of 12 to 15 percent abandonment, which would mean up to 2.5 million subscribers canceling altogether.

Whatever happens, it's happening tomorrow.

You can change your plan by clicking on this link when you are logged in to Netflix, or clicking "Your Account & Help" in the top right-hand corner and then "Change Plan" in under Account Information.

Not sure you want to stay with Netflix? Check out our picks for top Netflix alternatives, or click here for more off-beat alternatives.

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Comments

[Lucero65]

10:48 PM on 09/03/2011

I just changed mine from 1 DVD and streaming to just streaming for 7.99. The price was good at 9.99 for both but not worth it for me at 15.99. Once I realized I could watch movies instantly I was only watching those and the DVDs would sit in my home for over a month before (or if) I actually watched them. There are movies that I wanted to see on DVD that aren't on streaming (about 500 of them) but there are plenty on my instant list I can watch. Amazon.com also has movies online and those are pretty cheap if there is something that I really want to see that is not on netflix instant. Also I am thinking of just cancelling my cable (I only have it for the internet) because I NEVER watch TV. But my cable company is a ripoff and will up the price of my internet in order to compensate for my not having a TV plan.

[c0c0c0]

10:03 PM on 09/01/2011

I was on 7 at a time and streaming. For the last month I have been evaluating hulu+, and for my $8 Hulu is a better value for me personally since they have a lot of TV shows that I watch with recent episodes on it. I don't have cable anymore and it is nice to watch episodes I miss the day after they come out, and it is nice to have a recent season to be able to watch instead of waiting for them to come out on dvd before they are available to stram (and in that case I am more than likely to get a physical copy anyway).

So as of yesterday I am 7 at a time no streaming, and Hulu+. Thanks Netflix for pushing me to try out Hulu+ and deciding my streaming value is better with your competition. :D

(Oh and I can't spell either...)

[CEKChuck]

06:17 PM on 09/01/2011

I am a late-comer to Netflix. Even though I understand the upset with the large percentage price increase, it is still a bargain. Netflix revolutionized my movie watching much like my kindle revolutionized my reading. I'm watching more, and a wider variety of movies, sampling everything and discovering new gems all the time. So when I look at it, given the way it has greatly expanded my entertainment options, and how it does so with extreme convenience, there is no question my Unlimited Streaming, 2 DVD a month + Blu-Ray is worth $23. I wouldn't go see everything I've watched in the theaters, but if I did (or could) the cost would have been hundreds of dollars. Not to mention the tv shows I get to enjoy without having to subscribe to premium channels.

[quick kid]

03:16 PM on 09/01/2011

also netflix overhead costs have gone through the roof since tv networks and movie companys never thought it would be so successful

[quick kid]

03:15 PM on 09/01/2011

i used to have a 3 dvdplan + streaming and blueray option added total 24$. my new price would have been 28$ so not the 60% increase like most, but i decided i didnt want blueray which i may change my mind on. and i dropped to 2 dvd's so now my plan with the increase is 20$. still a steal. streaming is 7$ and i def watch more then 13 movies a month so redbox no deal for me.

[patbit]

03:04 PM on 09/01/2011

For convenience, price and selection you can't beat netflix. Love it and won't give it up.

[Honeejr]

02:17 PM on 09/01/2011

I don't have a netflix account but I know of others who do. Not sure if anyone else is having this problem with their internet service provider and cell phone provider but if you use your computer or phone for streaming after a certain amount of MB/GB have been used I'm charged for excess. So not sure if just keeping cable is the best bet or using the internet.

[E Linn]

02:09 PM on 09/01/2011

While I bristle a bit against such a huge increase, I can't cancel Netflix. My seven year old would skewer me. I consider an extra $5.99 per month small change when it helps keep my kid from asking to go out to vastly more expensive movie theaters, introducing him to some classic movies from my youth, and giving us both something to watch when we're home sick (that was me, yesterday...grateful to Netflix).

[frank day]

06:40 PM on 09/01/2011

Ever hear of books???

[E Linn]

07:42 PM on 09/01/2011

LOL. I know you don't know me so I'll give you the benefit of the doubt, but let me assure you reading is the main activity in my house. I flat out have a book addiction. But life is a balance, and while my child and I are avid readers we also enjoy screentime. $5.99 increase is small potatoes to me (I just dropped $25 on used books, literally 30 minutes ago) and my income is vastly under the national median. Books are important to me and my kid, and Netflix allows us to afford books.) Before you say it, yes, we frequent the library, too.

[JustLucky]

01:26 PM on 09/01/2011

I have a hard time understanding all the uproar. I consider it quite a bargain, and I'm amazed at all the interesting things I find when I dig around - I have dozens lined up right now to watch. I called in recently to ask a question, and happened to mention that I never bother with DVDs in the mail, because I get more than enough streamed. The clerk offered to cancel my DVDs, which surprised me, but I've always had great service when I've phoned in, so it would figure. They really did bungle the PR when they announced the price raise - absolutely! - their public relations do need to be overhauled, but there have been outside articles that have backed up their reasoning that they've been forced into this move by cost circumstances out of their control.

[LadySockMonkey]

12:00 PM on 09/01/2011

Saying the new prices go into effect today is a bit misleading. I accessed my Netflix account 3 days ago to cancel my current plan (1 dvd / unlimited streaming) in favor of just unlimited streaming and no DVDs. The confirmation message I got said my new plan would go into effect on Sept. 22nd. Presumably my credit card will be charged ($7.99 + tax x 2) so from where I'm sitting the new prices went into effect on Aug. 22nd for me.

[lyredragon]

11:21 AM on 09/01/2011

This is basically what I am seeing:
I would pay for 1 dvd at 7.99. Their streaming content is not worth the same price because the videos they offer are old and the quality is on par with free sites like Crackle. It's still 90% cheaper than cable, but not as cheap as illegal downloading.
It sounds to me like netflix should have come up to the $15 cost by graduating prices. They tried to put the frogs in the boiling water. Nobody was surprised that tons of frogs hopped out.

[thehighbrowpoliticker]

10:45 AM on 09/01/2011

I dropped my premium cable service for basic. It's just plain silly to pay money for channels that played movies that I did not want watch or pay $4.95 (per movie) from their on-demand service when I have Netflix. I disagree with general consensus here. I think having access to unlimited streaming of movies on all my devices (wii, wifi dvd player, pc, xbox and droid phone) plus 1 DVD for $16 month is a great deal. If someone disagrees, I would like know what would you suggest they charge for all of that.

[kwhitney333]

10:48 PM on 09/01/2011

Agree, I cut mine in half and just did unlimited streaming with Netflix it was a good deal with the one DVD at a time for 9.99 but not good at 15.98...we just have basic plus cable no premium channels I also have BB by mail which gives me unlimited in store exchange for new releases and no late charges, love that...We love a good movie!

[cassie reinara]

10:43 AM on 09/01/2011

Considering sub-par streaming content and delay in getting out new releases, Netflix is not justified in this drastic price increase. They have alienated a lot of people and will most likely lose a significant amount of customers. They also have to factor in the state of the economy for most people. This was really an out of touch with their customers move by the netflix management.

[Mausinn]

11:14 AM on 09/01/2011

I have to disagree. Many find their streaming content just fine unless you want the latest releases. That won't happen due to the pay per view dollars involved. As far as waiting for new releases from Netflix, I figure if I didn't rush right out and see it in a theater, I can wait another month to see it. If you factor in the state of the economy, you have to factor in the cost of fuel to go to a Redbox as compared to having Netflix deliver it to your door, plus to avoid added costs, you have to drive back to the Redbox or spend added charges by the day. The added costs by Netflix can be directly attributed to the cost charged by the movie distributors for the streaming content. They raised the prices dramatically when they realized how many people were using the service. Netflix had to raise their prices accordingly to continue to offer the service.

[JustLucky]

01:55 PM on 09/01/2011

I have no problems with the quality of their streaming, and I use only the streaming part of their service - I think this has to do with some people not using equipment that's doing a good job of it.

[DanielRomens]

10:36 AM on 09/01/2011

five bucks. Big deal. It still as cheap as 3 rentals from the store.

[FreedomBeforeSecurity]

10:31 AM on 09/01/2011

I cancelled my account already, but mostly from the fact that the streaming service primarily offers old movies and TV shows. If you want something recent, you're limited to DVD rentals.

I was a big supporter when the price-point was such that it provided a viable alternative to Bittorrent, but that's not true anymore. Streaming-only is useless for anything current, and paying to wait two days for a DVD is just silly when you can download it in 10 minutes for free.