Netflix Introduces 60% Price Increase

money pileSome sad news for new Netflix customers.  The media streaming company plans to break their service up into two distinct plans.  For those that are not familiar with Netflix, they had originally allowed users to stream movies and rent a dvd under a single payment plan.  Well, those days are gone.

The plan originally allowed users to pay a monthly fee of $7.99 for unlimited streaming and an additional $2.00 each for the rental of a single DVD.  The new plan will break that pairing up–hurting potential customers as a result.

Now, prospective customers will have to pay a monthly fee of $7.99 for unlimited streaming.  If the customer would like to rent DVDs from Netflix, they will have to pay a new subscription fee of $7.99.  So, if one was so inclined to purchase both services, the total price would amount to roughly $16.00.  Thats a 60% increase to the original cost of the service.

Customers that already have a Netflix subscription should take advantage of the original deal while they still can–the new payment plan will go into affect September 1st.  That’s not a whole lot of time.

With this new payment plan, Netflix effectively curtails the sale of DVDs.  The new model should hasten the DVD to “out-dated” status.  Gone are the days of high DVD sales.  Enter the era of widespread media streaming.

SOURCEwww.techcrunch.com       

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