Netflix Launches $7.99 Streaming-Only Option in U.S.

Netflix on Monday announced a streaming-only option in the U.S. for $7.99 per month, as well as a $1 per month price increase on its unlimited DVD rental options.

The streaming-only plan allows users to access all the movies in Netflix's "Watch Instantly" library, but does not include any DVDs. Netflix, however, does not include all of its movies in "Watch Instantly," so those who want a more comprehensive selection might want to stick with at least one DVD at a time.

Those who do stick with its unlimited DVDs will see a $1 price hike per month. Those who get one DVD at a time will see their monthly fee increase from $8.99 per month to $9.99 per month, while the two DVDs option will jump from $13.99 to $14.99 and so on. The one DVD limited plan, which lets users rent two DVDs per month, will remain at $4.99 per month.

"Why the changes? Our selection of TV episodes and movies available to stream has grown dramatically, and as a result most members want us to deliver unlimited TV episodes and movies two ways: streaming instantly over the Internet plus DVDs by mail," Jessie Becker, vice president of Netflix marketing, said in a blog post. "The price increase will allow us to continue to offer the popular plan choice of unlimited TV episodes and movies streaming instantly along with unlimited DVDs."

Users who sign up for a DVD plan automatically get access to "Watch Instantly" as well. Why doesn't Netflix introduce a cheaper, DVD-only option?

"The fact is that Netflix members are already watching more TV episodes and movies streamed instantly over the Internet than on DVDs, and we expect that trend to continue," Becker wrote. "Creating the best user experience that we can around watching instantly is how we're spending the vast majority of our time and resources."

The streaming-only option is not exactly a suprise. Netflix chief executive Reed Hastings has said several times that Netflix was considering that type of plan and hoped to launch one by year's end. The company has also repeatedly said that streaming is its future, and that going forward, it will shift from DVD rentals to Web-based, streaming access.

Netflix recently launched in Canada with a streaming-only service, also for $7.99 per month.

Netflix competitor Hulu also recently dropped the price on its subscription-based Hulu Plus from $9.99 per month to $7.99 per month.

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Chloe Albanesius

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I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

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Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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