Netflix Splits Rental Plans – Increase rates up to 25 percent for some Subscribers

Netflix DVD Rentals getting ready to mail - Credit: Netflix

(Best Syndication News) - Netflix announced today that they would be splitting their rental plans into DVD-Only Plans and an Unlimited Streaming Plans, both start at $7.99 per month to subscribe. The rate increase will happen to customers who want to continue with the DVD mail subscription and the Unlimited Streaming Plan.

New customers will already have the new pricing and plans, while existing customers will not see the rate increase until September 1, 2011. Those that have only one DVD rental mailed out at a time will see a rate reduction of $1, which will be $7.99 per month instead of $8.99.

Netflix will offer two subscriptions. So if you want the watch instantly streaming service and the DVD rental service, the rate would be $7.99 + $7.99. This adds up to $15.98 per month.

The rate increase is up to 25 percent when customers have signed up for 2 DVDs mailed out at one time and have the unlimited streaming service. If you opt for the 2 DVDs mailed at the same time ($11.99) and the streaming video service ($7.99) will now pay $19.98 per month starting in September. The current monthly rate for 2 DVD and streaming videos are $14.99 (sales tax is extra).

Netflix added the watch instantly streaming rental service in 2007. The company said that membership since 2007 have increased from 6 million to 23 million subscribers in the United States.

Blockbuster has been struggling with closing stores and revamping their business model to stay competitive in the video rental business. They offer video game rentals by mail along with their DVD rentals with one DVD at a time for $11.99. They will let you exchange 5 of the mailed DVD’s at their stores for a free store rentals.

Amazon has a online streaming video rental service. You can go ala carte and rent as you go. Alternatively, if you want to watch unlimited streaming video rentals you can sign up with their Amazon Prime service for $79 per year. With Prime membership, you also get unlimited FREE Two-Day Shipping on all of your orders that you place at their website.

By: Julie Marcus

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