With Netflix subscribers now watching more movies through online streaming than through discs sent via mail, Netflix has announced that it will now be offering its first streaming-only subscription plan for its US customers. Users who are content just to stream movies and TV shows can now pay $7.99 to do so. Netflix had tested the streaming-only waters last month with both a $7.99 and $8.99 price. Luckily for subscribers, Netflix decided to go with the former cheaper option.
“We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet,” said Reed Hastings, Netflix co-founder and CEO. “Today’s action reflects the tremendous customer value we’ve injected into streaming from Netflix, our initial success with a pure streaming service in Canada for $7.99 a month and what our U.S. members tell us they want.”
It’s not good news for all Netflix subscribers. If you happen to still prefer to get your movies the old fashioned way – through the mail – you can expect to pay at least a dollar more for the privilege. Subscribers who get more than two DVDs at a time will pay more accordingly. That makes the streaming-only option the cheapest plan available at $7.99 a month. The new price structure and the streaming-only plan both go into effect starting today. You can see the new subscription plan rates below.
Over the past year, Netflix has significantly increased its streaming library. The company has also gone to lengths to make streaming widely available by offering options on a variety of Internet TV devices and through all three of the major video consoles.
Netflix’s streaming-only debut comes a week after Hulu, a direct competitor to Netflix’s streaming effort, announced that it was lowering its subscription plan to $7.99.