PRICES! Netflix to raise its prices San Francisco Business Times - by Steven E.F. Brown Date: Tuesday, July 12, 2011, 11:50am PDT - Last Modified: Tuesday, July 12, 2011, 12:00pm PDT Related: Media & Marketing, Technology Enlarge Image Netflix
Netflix is raising prices.
Staying home and watching films as cheap entertainment during the recession is getting more expensive.
Movie watching business Netflix Inc.bizWatch plans to raise its prices by about 60 percent a month for customers who want DVDs by mail and movie streaming.
Right now, customers of the Los Gatos company (NASDAQ: NFLX) can pay about $10 a month for unlimited video streaming and movie-by-mail service. That rate will rise to nearly $16 on Sept. 1 for existing customers, Netflix said. New customers will pay the higher prices at once.
If customers only want to get movies in the mail in the company’s ubiquitous red and white envelopes, they can pay $8 a month for one disc at a time, or $12 a month for two discs at a time.
But for tech-savvy customers who want to watch online or through their TiVobizWatch (NASDAQ: TIVO) recorders, the price is going up.
Netflix said the price increase better reflects its costs. It focused on the movie-by-mail plan in its press release about the changes, trumpeting the “lowest-ever price offered” for that service. But customers who read the fine print will see that they’re almost certainly going to pay more.