Netflix Splits DVD, Streaming Plans

LOS GATOS: Netflix has unveiled a new pricing structure for its U.S. customers, nixing a current tier that offers both unlimited streaming and DVDs by mail and launching a new DVD-only plan, in addition to the existing streaming-only plan.

The new DVD-only plans are $7.99 a month for one DVD out at a time and $11.99 a month for two DVDs out at a time. The unlimited streaming plan will remain at $7.99 a month.

In addition, the company has separated the unlimited streaming and unlimited DVD plans in the U.S. "to better reflect the costs of each and to give members a choice." Subscribers can take up a DVD-only plan, a streaming plan or both.

For new Netflix members, the changes will be effective immediately. For existing members, the new pricing will start for charges on or after September 1.

"Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail," said Andy Rendich, Netflix’s chief service and operations officer. "By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members."