Netflix Raises Rates – Netflix Rate Hike Affects All DVD Customers

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Netflix has announced that they are raising their rates, effective for new customers immediately, while the new fees for existing customers will be effective September 1st. The rate hike is said to be necessary to reflect the increased cost of doing business, particularly with respect to postage rates for mailing DVDs. While the new prices apply to everyone, the new pricing plans will most affect those who had the unlimited streaming plus unlimited DVD plan, as Netflix is now separating the two plans, and you must pay a fee for each separately.

The rate for unlimited streaming will remain the same, at $7.99 per month. The rate for unlimited DVDs, with one DVD out at a time, will also be $7.98 per month, and the rate to have two DVDs out at a time will be $11.98 per month. If you want both unlimited streaming and unlimited DVDs, you will have to pay $7.99 plus $7.99 ($15.98) or $7.99 plus $11.99 ($19.98).


Explains Netflix’ CSO and COO, Andy Rendich, “Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail. 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.”

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2 thoughts on “Netflix Raises Rates – Netflix Rate Hike Affects All DVD Customers

  1. I’d join Netflix again and pay the rates if the movies over streaming were good…but they don’t include many of those available through the mail…

  2. While some of the increase may be because of increased postal costs, I think NetFlix is really doing this to try to push users more towards streaming. The processing costs for streaming are negligible when compared to the costs for packaging and mailing DVDS, then handling them a second time when they get back (not to mention the costs for handling damaged DVDs, unreturned DVDs, etc.)

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