Big news from Netflix today: the company has officially launched a U.S. streaming-only plan, which is priced at $7.99 per month. Netflix has also raised the prices of its DVD by-mail plans from $1 to $8, depending on the plan. A full table comparing the old and new pricing is after the jump.
Netflix offered the following on the new pricing on its official blog:
“The price increase will allow us to continue to offer the popular plan choice of unlimited TV episodes and movies streaming instantly along with unlimited DVDs. The new plan, which does not include DVDs, is a great option for the increasing number of members who only want to watch instantly.”
Here is the breakdown of the plans and pricing, courtesy of GigaOm:
The new streaming-only option is especially interesting because it enables Netflix to eliminate costly DVD mailings to customers who select that plan. J.P. Morgan analyst Imran Khan estimates that such costs account for more than 30% of Netflix’s revenue expenditures.
What do you make of the new Netflix plan and pricing, Insiders? For those of you who haven’t signed up yet, does the 8 buck streaming-only option interest you? Does Netflix’s streaming content catalog contain enough compelling titles to make it worthy as a standalone option?