SAN FRANCISCO – Netflix is preparing for the day when getting DVDs by mail is as old-fashioned as going to the video store. It's hoping to wean people from DVDs with a cheap plan that offers movies and old TV episodes exclusively through online streaming. It will cost $8 per month, matching a recent price cut by rival Hulu.
Most analysts expect the streaming-only plan to appeal to younger subscribers, especially those who have signed up for Netflix in the past couple years as the service became available through video game consoles. To them, the new price will probably seem like a bargain: Netflix had been charging $9 per month for the lowest-priced plan that included unlimited video streaming.
At the same time, Netflix is making it more expensive to receive those familiar red envelopes in the mail. The company is trying to offset its postage expenses and bring more money to improve the quality of its Internet streaming library.
The monthly rates on Netflix's three most popular rental plans will rise $1 to $3, depending on the plan. They will be $10, $15 and $20, depending on how many DVDs the subscriber is allowed to have out at once.
The changes announced Monday are Netflix's latest step to ensure it doesn't repeat the same mistakes of Blockbuster Inc., a once-ubiquitous video store chain that didn't adapt quickly enough to technological change and went bankrupt. (AP)
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