NEW YORK (CNNMoney) -- Netflix is launching new, unlimited DVD-only plans in the U.S. -- but as a part of that move, it's scrapping unlimited plans that include both physical DVDs and online streaming.
Subscription movie rental service Netflix (NFLX) said Tuesday that the changes are meant to "better reflect the costs" of each option. The changes cut prices slightly for customers who only want DVDs, but streaming video will now cost extra. Customers who want both options will essentially have to pay for two plans, raising their overall bill.

Netflix's unlimited streaming-only plan will remain at $7.99 a month, while its "1 DVD at a time" plan will also cost $7.99. That means customers who want both streaming and DVDs will have to shell out at least $15.98 a month.
That's a big jump from the $9.99 a month customers currently pay for a plan that offers unlimited streaming plus 1 DVD at a time.
The changes will be effective immediately for new customers and will take effect September 1 for existing members, Netflix said.

The move comes as Netflix continues to shift its focus toward online streaming video -- an option that, while popular, costs Netflix loads of cash as studios start commanding higher prices for their content.
Netflix's announcement sparked an immediate and loud backlash from customers. By Tuesday afternoon, more than 3,000 comments filled the Netflix blog post announcing the changes -- most overwhelmingly negative. Hundreds of commenters said they would cancel their plan, some in favor of rival streaming offerings from Hulu and Amazon.

Others planned to stock up on DVDs from rental kiosk Redbox, which said earlier this year that it is working on its own streaming service to take on Netflix.
"The only way that this is terrific for the customer is if you plan to offer your entire collection available for streaming," one respondent wrote on Netflix's blog. "Otherwise this is just yet another way to choke more change out of your customers."
"You've decided to raise customer rates during a period of economic downturn, when people are struggling to pay for basic necessities," another customer wrote. "You're forcing me to pay more for products and services I've paid for loyally for quite a while now. You're really, REALLY making me reconsider this business relationship."

Netflix first introduced streaming plans in 2007. Since then, the service's membership has climbed from 6 million to 23 million in the U.S.


Source: http://money.cnn.com/2011/07/12/technology/netflix_unlimited_dvd/

I'm really sad about this :( I love my netflix... it's so convenient to be able to pay my $10 and get my unlimited streaming + one movie a month-ish.

Netflix has been putting better movies and TV shows on stream. In the past they sucked. I only have the streaming plan and I'm happy with the options I get.

I think this is a bad move for Netflix. Customers are unhappy, and places like Blockbuster are offering similar plans and stealing customers.

And what happened to the concept of "bundling" and saving. There is no inbetween plan anymore. There is no adding on 1 disc at a time for a slightly higher price. No, it's DOUBLE the price to add something. Bad business model.

We're looking for some other options. Netflix doesn't have the monopoly on this sort of thing anymore.

I didn't know blockbusters were still around. All the stores here have closed :(

blockbuster has closed most of their stores but they have restructured to do the mailing of DVDs like netflix was at the start. They are looking into the streaming of movies but havent gotten that far yet.

This is a horrible move. I already know people that have cancelled their subscriptions and I will be cancelling mine at the end of the month. Perhaps if enough people cancel Netflix will reconsider. I remember reading another article a few days ago about this when the CEO said something about "financially" it makes sense for people that ONLY want streaming or people that ONLY want DVDs. My question is... WHO THE HELL WANTS ONLY DVDS?

Until they fix the quality of the streaming (which sometimes blows) and start gettting better movies available for watch instantly I'm cancelling. At least when I was paying $10 a month I could have the junky streaming, but if I wanted a good movie I could get it via DVD. I'm not paying $16 for that option, SORRY! Redbox is looking better and better.

@Beautiful Lies - I would want only DVDs. I don't own anything that can stream a movie well enough to pay for it. I live out in the boondocks with only a Sprint hotspot (from an EVO) for internet, so streaming wouldn't work too well for me. But the DVDs would. Though, I'd prefer 2 or 3 at a time instead of 1.

@beautiful lies: I know some people who just get the DVDs.

Well I know people that get just the dvds also and don't really use the streaming, but I feel like there are far more people that want both. Is $7.99 really a reasonable price for people that want just DVD's only? $7.99 for ONE dvd at a time? I feel that's a giant ripoff right there.

Honestly, people who use netflix for dvd's are missing out on redbox. We switched our plan to streaming only, because you still have to wait an obnoxious amount of time before getting a new release, anyways.

I recently tried the streaming thru my wii - which i understand that there is more available if you stream thru the internet then the wii - but I have been very disappointed with the selection thru the wii. There is hardly anything "new", the TV shows only have the first episodes no matter what season their on currently on the tv.... however - since I have cable - it is cheaper then getting things "on demand" that I would pay for otherwise. (like some of the HBO series, or anything from Disney - since their on demand each movie is $1.99 etc) so I am still saving some money by having it atleast during the summer and on the weekends...

You can get any of the movies available for "watch instantly" streamed through the wii. I find that the selection is shitty if you try to browse ON the wii, so I just browse the movies on my computer and add what I want to watch to the Instant Queue and then when I get on the wii, all the movies I wanted to watch are right there, easy peasy.

ahhh thank you for the tip

Huh... I never thought of that. I should try it. Otherwise, I'm not at all unhappy with their decision. It actually SAVES me a couple dollars a month. I got my Wii about a year ago and we got Netflix almost as soon as we got the Wii. I. That time I have never once gotten a DVD. I only use Tue streaming. But I'm in a minority, apparently, judging the by incredibly pissed masses that blew up Facebook and Twitter.

yeah im lowering my plan with netflix i love them to death but thats the 3rd time i remember that they hiked up their plans and this one is the biggest one yet.

When the blockbuster down the street from my house closed (sad day :( ), and the nearest blockbuster chose to make their new movie rentals "one day only" we had no choice but to go to DVD's by mail. However, we went with blockbuster by mail and we love it. We pay 12$ a month, get 1 dvd at a time (mailing time usually takes 4 days to send in, and back), they gave us a 2 week free trial for signing up and we now got our 5 in store exchange (where you take the dvd you got in the mail, take it to a blockbuster and they give you a free copy of the movie you want) to unlimited for signing up.

I've always been anti Netflix and Redbox simply because i dont think they are as good as blockbuster....

The upside to Nextflix is their streaming. They have well over 50,000 movies/tv episodes online, and if you own a Wii or xbox360, you can stream unlimited amount over those devices and your computer for 7.99 a month. AS for the mailing times, they have so many locations now that if I mail in my 1 DVD at 10am on Monday, they get it that day, or early Tuesday and ship our right away. If I mail out Monday at 10, My new movie will be there by Wens. I see how when there were blockbusters to exchange in that blockbuster was a good deal, but netflix will be changing to either $7.99 for 1 DVD at a time ( cheaper than the $12 blockbuster with quicker turn over time) and than $7.99 for streaming. I am pretty sure you can get a month free trail or at least 2 weeks, so maybe give it ta try and see if you like it since your local store closed.

Ps. I am not working for netflix ( i feel like I sound like i do lol, i just love them and stopped havign cable since they have so much on their streaming)

May pay $12/month, but get 5 in-store exchanges. That's a ~$25 value (for 5 exchanges alone). When I had blockbuster (when one was near me), they had an unlimited in-store exchange plan that was like $25/month or so and it rocked. Every movie I got in mail, I got a free movie from the store.

I know they use to have some great plans, I used them too, but since they are gone I was just saying netflix has improved quite a bit :)

I can't disagree. I just remember the awesomeness that was mail-in exchanges at blockbuster. Haha

They are a buiness. They need to make money and with studios making them pay more, we will pay more. Also, they have a big issue with people keeping DVDS and just canceling the credit cards ont he account ( which is a bigger deal now that people can have 3 at a time) and also with the "lost in the mail" feature, people could lie or things really are getting lost. Either way that is a huge cost for them to pay, meaning more cost to people. IMO, as much as the stream online, Paying $15 a month isnt a lot, when you think cable cost around $100. We get Hulu and Netflix, so we will be paying $25 a month for almost as good as cable. Thats not a big deal IMO.

Where the hell is cable $100 a month and why would you ever pay that? That's nuts. Basic/Standard cable from Comcast is like $55 a month. For $150 a month I get Digital Cable (with free DVR) including the awesome On Demand, high speed internet and phone (with voicemail and free long distance).

Well it was $100 for the On demand here in Baltimore. For me, $100 is still way more than the $20 I pay for netflix AND Hulu.

Er... where do you live that cable costs $100 a month?

My cable, internet AND phone costs us $90/month.