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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?

(via GigaOm)

29 Responses to “Netflix Introduces Streaming-only Plan, Price Changes”

  1. Visitor [Join Now]
    Veron Dent [visitor]

    Does Netflix’s streaming content catalog contain enough compelling titles to make it worthy as a standalone option?

    According to the reports, many new and catalogue titles might not be available for streaming for: SEVEN years; after appearing on HBO or other services.

    The hybrid DVD/streaming model will be around for, as mentioned above, for quite sometime; therefore, streaming ONLY will be limited.

    • Visitor [Join Now]
      Jamie [visitor]

      Movie wise most of the recent stuff is from the deals they have with Starz and Epix. Myself I like the tv shows stuff more and they have right now available 24, X files, Rescue Me, Nip/Tuck, Battlestar Galactica etc. They also have a lot of Discovery channel programming such as Deadliest Catch, Mythbusters, Dirty Jobs, Man Vs Wild etc.

      If you have kids they have a lot of Nick programming like Drake and Josh full seasons, Blues Clues, Spongebob, Dora, Diego, Wonder Pets.

      From where the content was when they launched, til now, is a huge leap forward. It was pure crap when they started out but in the last 12 months they have really stepped it up.

  2. Member [Join Now]
    s142424

    Streaming is of no use to me until I can get high-speed internet without signing over my soul to Comcast.

    • Visitor [Join Now]
      Sewunicorn [visitor]

      Even if you sold your soul over to Comcast, streaming might still be useless to you. Roger Ebert (of Siskel & Ebert fame) tweeted today that Comcast wants to charge a usage fee for Netflix use (not sure if they want to charge Comcast or the customer) and that *conveniently* he couldn’t get Instant Watch to load at all through his Comcast account today.

  3. Visitor [Join Now]
    tinybrat [visitor]

    Their streaming sucks personally. Most newer movies are not available, and many of my favorites from the 90’s aren’t available either.

    As for their price hike, 3 out at a time for $20 / month, no thanks. I’ll be going back to redbox as an exclusive renter. I can’t rent 20 discs in a month anyway, so its not worth it to pay that much.

  4. Member [Join Now]
    alans613

    I think the streaming still leaves a lot to be desired, especially when it starts and stops all the time. It’s getting better, but I wish it would play all the way through with no interruptions.
    As far as content goes, it’s OK but not great.
    There’s no way in HELL that I would pay $7.99 a month just for streaming. Streaming is merely an extra to me that I rarely use due to the starting and stopping problem. Looks like i’ll pay the $9.99 a month…for awhile at least.

    • Visitor [Join Now]
      Buck Peters [visitor]

      I’ve been having a running problem with Netflix for the past year. I run in through my PC on cable. Constant stops for it to buffer. Finally I saw where someone used Firefox in stead of IE to correct their problem. Wham, problem solved. Leave it to MS to have problems with there own softwares integrating properly. No more stopping and starting with Firefox.

  5. Visitor [Join Now]
    Jimbo [visitor]

    I have been a Netflix subscriber for years. I had the 6 disc at a time with blu-ray option. Because of the 28 day delay I also rent from Family Video. This price increase just reminded me on how much i was spending. I change my Netflix plan to 3 at a time. Save $20. The streaming has improved. I feel Netflix is still a good deal. My complaint is the 28 day delay. To bad Redbox has it too. Remember competition keeps prices down. Hang in there Blockbuster.

  6. Visitor [Join Now]
    Farva [visitor]

    I’ve been expecting the news of increased prices ever since they announced the change of their focus to a streaming business.

  7. Visitor [Join Now]
    silentbob [visitor]

    If you Netflix streaming stops and starts, its a problem on your end. Either your internet is too slow, or your software or hardware is inadequate. I am using Netflix on a Roku box and also an XBox360 with DSL at only 1.5 Mb/s and it rarely pauses, if my connection was faster it would never be interrupted.

    • Member [Join Now]
      alans613

      I stream through the Wii and have AT&T high speed 768K. I’m betting it’s the slowness of AT&T that’s causing the stops and starts. Also, the picture quality isn’t the greatest, nor is the sound. That has to be on NF’s end.

      • Visitor [Join Now]
        Jamie [visitor]

        The picture quality is on the limitation of the Wii I believe. I stream through my PS3, get very high picture quality and never a hiccup using Fios as my internet service.

      • Visitor [Join Now]
        Big Al [visitor]

        It’s your pipe. Personally, I wouldn’t do streaming with less than 3 Mb/s. Furthermore, this affects your image/sound quality since NF makes adjustments based on how fast it can push the bits down to your machine.

        I doubt that the Wii is the source of your problems.

  8. Visitor [Join Now]
    tinybrat [visitor]

    I wonder what Redbox’s streaming will be like and what devices it will be on. I’m surprised to hear Netflix uping their prices right after redbox states publicly that they will start streaming in 2011.

  9. Visitor [Join Now]
    Tee [visitor]

    In my opinion until one player can provide 1st run (available on release date w/dvd) movies for under $3, all these companies racing to be the “best” provider are just spinning their wheels. I get it as far as the TV show’s but even that can be handled with a DVR. 90% of consumers want the newest movies out and the problem with that is Cable TV already has these movies available on VOD, the issue is the price at $5.99 it’s just to expensive. If cable simply lowered the price to $3 they would put Redbox, Netflix, & the remaining Video Stores out of business. The real advantage is to the cable companies, their just to stupid or greedy to realize it.

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      Studios control VOD pricing not cable. Studios are trying to maximize the overall pie not just VOD. Theatrical, sell through and pay TV window all suffer if you jam the accelerator on cable VOD pricing.

  10. Visitor [Join Now]
    JeffinwesternWA [visitor]

    $4.99 is still the deal w/ netflix, get the “newer” movies @ 2 per month, stream 2-3 others a month when time permits from what’s available. Use a computer with an HDMI bus so you can hook an HDMI cable to your TV and use the Tv as a second monitor (big screen) to watch the streaming movies. Hope the internet provider doesn’t slow down things too much….I’ll stick w/ this plan and an ANTENNA getting me 26 (!) FREE channels, all DTV, most are Hi def and thus 7201180 perfect HD, w/o the compression for a worse pic that the cable monopolies use. Almost all the same Tv for FREE! (why would anybody PAY for tv that’s available OTAfor free – I don’t get it!) 15~ miles outside Portland, OR. THAT’s economy!

  11. Member [Join Now]
    lumin47

    Don’t know,
    will have to think on this,
    I was paying $16.99 a month for the 3-plan
    and I was getting on average 22 movies a month (good deal);
    but now to $19.99 with tax about $21.00?…
    dunno, maybe still a good deal;
    but after them delaying and holding the recent “Robin Hood” DVD
    for almost
    3 weeks, I am a little annoyed!!

    Do you know,
    NETFLIX, if you get
    to the $1.00 figure that Redbox still offers;
    that…
    I will give you up?
    As they will easily offer the latest…

  12. Member [Join Now]
    lumin47

    Shane!

    You forgot to mention that the above “rate”
    schedule becomes effective: January 1st 2011!!

  13. Visitor [Join Now]
    BH14 [visitor]

    I had netflix just a couple months ago because it was free month trial. I was impressed with the streaming quality from my ps3 and increased streaming selections. They increased the amount of streaming movies and added lot of newer releases of movies and shows. However, I still think of it as a bonus feature rather than a standalone service for $7.99. There is just so many old movies and tv show series I could watch. I don’t like the increase to $9.99 for 1 movie w/ streaming and I don’t like how they charge extra for blu-ray movies. They should have definitely kept it at $8.99. Netflix won’t see me rejoining unless they make it worth it. I would rather pay $1 for dvds and $1.50 for blu-ray rentals. There are like 5 redboxs close around me so I have plenty of various movies to choose from. And I can always check what is available from their website.

  14. Visitor [Join Now]
    BH14 [visitor]

    Amazon VOD is having 99 cents rentals on their newest releases right now as part of their black friday deal. The Expendables is 99 cents to rent on Amazon. Not too shabby Amazon…. And Vudu is now an app on PS3. I may have try Vudu out because it looks pretty good and looks much better than the PS store rentals. They also have lot of movies for only $2. I am gonna try out Vudu and see the quality. I still prefer redbox though over netflix and vudu.

  15. Visitor [Join Now]
    rancher [visitor]

    Screw Netflx they want to raise prices when everyone else is going down r bankrupt. offer out of date streaming for $7.99??? I can get anything I want streaming for free! Why pay those dolts…

  16. Visitor [Join Now]
    Angie [visitor]

    I watch netflix on my wii and I don’t mind the 9.99 cause I don’t really care to get movies in the mail but I waned to watch small wonder so it will do. And when I wonna see a new movie I go to redbox get it watch it and get back to my Charles in charge.

  17. Visitor [Join Now]
    Sewunicorn [visitor]

    I downgraded to a one-out plan when the price increase was announced. I realized just a few days before that announcement that I haven’t been turning discs around as fast as I used to, and I’m doing a lot more streaming of TV shows and older movies. When I was unemployed, I was really able to maximize a 3-out plan and had a new title arriving every single mailing day for about 3 months straight. Throttling? What throttling? I never saw it.

    The stream catalog is much improved, although there have been several movies vanish from my instant queue before I could get to them. I assume I just hit the end of their stream license time. My biggest problem right now, though, is buffer times. When I play on my PC, they load fairly quickly and rarely pause in the middle. When I play on the Wii, however, it takes an average of 10 minutes for the initial load and I’m guaranteed to stop to re-buffer at least every 30 minutes. I am having other connectivity issues with AT&T, so I’m not entirely sure where the problem actually lies.

  18. Member [Join Now]
    s142424

    Is raising your prices in the middle of a recession really a good idea?