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The price of your Netflix plan is about to go up

The price of your Netflix plan is about to go up (photo)

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Attention Netflix users: the price of your plan is about to go up, potentially as much as 60%. Earlier today, the company announced on its blog that it was splitting its two services — DVDs sent through the mail and unlimited streaming movies over the Internet. Now instead of paying $9.99 for one movie at a time and unlimited streaming, starting September 1 (or immediately, if you’re just signing up) you’ll have to pay $7.99 for each — eight bucks for the DVDs and eight bucks for the streaming. That comes to $15.98 per month, a six dollar increase over the previous price. It’s not an eight buck a month hike across the board; the new prices vary by the size of your plan. I have Netflix’s four DVD plus unlimited streaming package, which according to the “Your Account” section of Netflix’s site, will only rise by $1.99 per month starting in September.

As to the why, there are all sorts of theories besides, y’know, “Spaceballs 2: The Search For More Money.” Jessie Becker from Netflix offers the official reason:

“Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering.”

The Los Angeles Times, meanwhile, attributes the price spike to “the more challenging economics the company faces to acquire digital content and ship DVDs.” The Times even speculates that Netflix could actually benefit from a slight decrease in membership. If people cancel the DVD portion of their membership, they save on shipping costs. If they cancel the streaming portion of their membership, they can reoffer Sony Pictures movies that it recently lost “because its subscriber total exceeded a cap established by the studio.”

In other words, Netflix is a victim of its own success. In the past, they got streaming content on the cheap because no one thought the rights were worth much, but now studios know better. Netflix has to continue to offer their customers the same sort of streaming content they’ve gotten accustomed to, but the amount they’re going to have to pay for that content is only going to rise. Which means the price customers pay for that service has to rise too.

On the other hand, Netflix can’t exactly plead poverty. Their stock hit an all-time high last week on news of their expansion into Latin America. And anecdotally, I can’t help but notice that they’re raising prices right as they’ve driven the last couple video stores in my neighborhood out of business. That’s sort of distressing. According to the 6,000 angry comments and counting on Netflix’s Facebook page a lot of people aren’t happy about it, either.

We all fell in love with Netflix in the first place because of the convenience and the price: it was a cheaper, easier model for movie rentals without due dates or late fees. I just hope the company doesn’t forget that.

Will you change your Netflix plan because of this price increase? Tell us in the comments below or on Facebook and Twitter.

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The Best Of The Last

Portlandia Goes Out With A Bang

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The end is near. In mere days Portlandia wraps up its final season, and oh what a season it’s been. Lucky for you, you can watch the entire season right now right here and on the IFC app, including this free episode courtesy of Subaru.

But now, let’s take a moment to look back at some of the new classics Fred and Carrie have so thoughtfully bestowed upon us. (We’ll be looking back through tear-blurred eyes, but you do you.)

Couples Dinner

It’s not that being single sucks, it’s that you suck if you’re single.

Cancel it!

A sketch for anyone who has cancelled more appointments than they’ve kept. Which is everyone.

Forgotten America

This one’s a “Serial” killer…everything both right and wrong about true crime podcasts.

Wedding Planners

The only bad wedding is a boring wedding.

Disaster Hut

It’s only the end of the world if your doomsday kit doesn’t include rosé.

Catch up on Portlandia’s final episodes on demand and at

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Your Portlandia Personality Test

The New Portlandia Webseries Is Going Your Way

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Carrie and Fred understand that although we have so much in common, we’re each so beautifully unique and different. To help us navigate those differences, Portlandia has found an easy and honest way to embrace our special selves in the form of a progressive new traffic system: a specific lane for every kind of driver. It’s all in honor of the show’s 8th and final season, and it’s all presented by Subaru.

Ready to find out who you really are? Match your personality to a lane and hop on the expressway to self-understanding.

Lane 10: Trucks Piled With Junk

Your junk is falling out of your trunk. Shake a tail light, people — this lane is for you.

Lane 33: Twins

You’re like a Gemini, but waaaay more pedestrian. Maybe you and a friend just wear the same outfits a lot. Who cares, it’s just twinning enough to make you feel special.

Lane 27: Broken Windows

Bad luck follows you around and everyone knows it. Your proverbial seat is always damp from proverbial rain. Is this the universe telling you to swallow your pride? Yes.

Lane 69: Filthy Cars

You’re all about convenience. Getting your car washed while you drive is a no-brainer.

Lane 43: Newly Divorced Singles

It’s been a while since you’ve driven alone, and you don’t know the rules of the road anymore. What’s too fast? What’s too slow? Are you sending the right signals? Don’t worry, the breakdown lane is nearby if you need it.

Still can’t find a lane to match your personality? Check out all the videos here. And see the final season of Portlandia this spring on IFC.

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Last-Minute Holiday Gift Guide

Hits from the '80s are on repeat all Christmas Eve and Day on IFC.

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GIFs via Giphy, Photos via The Everett Collection

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