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Netflix has been in the news lately because they are increasing their subscriptions. This week we received an email from Netflix about how the plan will affect us.

Change to Netflix Subscription Costs

Here's how the email from them described the changes:

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

That means that our monthly bill will go up more than 50%. We're so annoyed that another bill is going up. Before jumping ship, though, we wanted to examine how we use Netflix.

Our Netflix History

Netflix is a very popular choice for people who are looking for cable alternatives. We received a Netflix trial a few months back and fell in love with the service. The trial gave us 2 DVDs at a time with unlimited streaming. Once it was over we went ahead and switched it to 1 DVD and unlimited streaming. We use the PS3 and my laptop to watch our movies and I have to say the service has been great.

Unlike Hulu, Netflix doesn’t include ads on their streaming videos. The DVDs do have some ads, but you can just get your food ready while they run. While I don’t consider it a huge disadvantage, some of the movies and shows I want to watch on Netflix aren’t available streaming.

Keeping Netflix, But Changing Plans

After chatting with my husband, I think starting September, we'll go to streaming only for our Netflix service and see how that works out.  

Like I mentioned, I really wish they have more options for streaming. We use the 1 DVD at a time to fill in the gaps in streaming shows and movies.

How about you? If you're currently a Netflix member, are you going to keep the DVDs and the streaming or will you choose one service?

Photo Credit: Marit & Toomas Hinnosaar

About Elle Martinez

Elle Martinez helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second..

18 comments add your comment

  1. I am bummed out as well since I currently use both streaming and DVDs. Streaming quality has gotten a lot better, but there are still not as many options as there are with DVDs. And new movies are almost never available with streaming.

    I guess we have a month or so to decide, but I might stick with streaming only as well.

  2. we are staying with netflix. even with the price hike, it’s still easier, more convenient and substantially cheaper than going to the movies. we’re also keeping the dvd option, 2 out at a time, because the streaming movies are, for us, a little lacking.

  3. We’ve never had Netflix, but I’m not surprised that they are raising their prices. They have significant dominance in the entertainment market now and many of their subscribers are Netflix addicts. The new $16 price point is still low enough for most people to just sweep it under the rug. That being said, a 50% increase is still a bit steep even if it only works out to $6 a month.

  4. I’ve been a Netflix customer since the very beginning and have always recommended them and shouted their praises, but this really disappointed me. I considered completely giving them up I was so mad, but decided to take the one DVD plan since there are not enough streaming choices for me. I’m probably going to just use my Fios on demand option more often and eventually quit my beloved Netflix. But I think I am spoiled to cheap and abundant choices and this is just a residual of the whole economic fallout.

  5. We’ve only had the trial Netflix, so it doesn’t affect us. But my brother’s affected. He watches TV series over Netflix, some of which are DVD only. He said he’s going to check the library, and if they’re there, switch to streaming-only.

    However, this review says that Netflix is still the best deal around.

  6. I am with Vera. There are quite a few shows and seasons that are not available with the streaming option. Hence we signed up for the lowest version of the plans that provides both. It totally sucks that they hiking up the price by that much.
    We have previously cut down our cable service and it has worked out great. Might do the same here and see if would really miss it. Can always sign back on.

  7. I was pretty mad at Neflix when I got this email as well. There’s little chance I’ll pay double what I do now. I’ll most likely cancel netflix entirely and pay for the occasional On Demand movie. It seems On Demand gets a hold of new releases first anyway and I was already close to dropping Netflix, but this sealed the deal.

  8. I will probably cancel my plan. I don’t use it nearly enough to warrant even the $10 I was paying, let alone $16. Still, there’s nothing stopping me from picking up a plan again in the future.

  9. I tend to use streaming more than DVD, but really more out of the instant interest in watching something. The problem is that the streaming selection is just not nearly as good at all. I’d been thinking of planning a bit with DVDs but now I’ll have to reevalute the whole thing.

    Focus more on DVD’s, and get a better selection – but trade off spontaneity and volume?

    Or, focus more on streaming, and get as many movies as I want instantly – yet get a much more limited selection?

  10. We’ve never had Netflix but I read about that increase in prices. A lot of customers are probably contemplating on giving up Netflix because of the reduced value. Imagine paying $9.99 for unlimited use and then saving only $2.00 but losing the other benefit (DVD or online streaming).

  11. I switched to the steaming only plan several months ago when they raised the Blu-Ray prices. For me the price is the same. I also wished they would make more of the newer movies available. I also have Hulu Plus. I stream both through a Roku and I do not have cable. The two services pretty much take care of all my entertainment needs.

  12. We will continue on with Netflix but with much reluctance. This is the second time they jack up rates and what’s to keep them from doing it a third time. We will more than likely adjust our plan and eliminate their stream and keep the DVD plan only.

  13. I’m staying with Netflix but I will be downgrading to the 2-out / month with no streaming. I read an article that says Netflix is trying to bring better streaming content to make people go to the streaming only plan but the content is expensive to license. So, they’re screwed.

  14. Even with price increase the best bargain as far as we’re concerned. Anytime, I can stream something interesting from all kinds of subjects. Who cares if I stream a t.v. series a year later. I can see the whole series if I want with NO advertisements. No schedule mishaps trying to keep up with the one independent or foreign film that might play for a day or two locally. Theater, 8.00 for one movie versus streaming for 8.00 and 100’s of movies. Haven’t found anything as good online. And gigantic cable channels that repeat the same programs all month. Love the range of old movies to new.