Big Shakeup in Pricing Expected from Netflix (NFLX)
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Netflix (Nasdaq: NFLX) shares are trading lower Tuesday amid rumors of a new rental plan for the media company.
According to Netflix's site, users will now be able to rent unlimited DVDs, one at a time, for just $7.99 per month. The price increases to $9.99 per month for Blu-ray discs.
CNET noted, after speaking with a Netflix rep, streaming will not be included in the plan. If you want eight DVDs out at a time, that's going to be $55.99 per month.
Engadget said a shake-up in pricing might be happening. The tech blog believes combined services will now increase in price from $9.99 to $15.98 per month for it's one-DVD-at-a-time and streaming combination package. The change will be effective Wednesday, July 13th at 9pm EDT, with no grandfathering of plans expected.
As rights to movies and TV shows continue to climb for Netflix, a massive hike of its subscription prices is the quickest and easiest way to keep revenue flow happening.
No word aside from the unlimited DVD deal has come from Netflix yet.
The stock is down about 0.6 percent this afternoon.
According to Netflix's site, users will now be able to rent unlimited DVDs, one at a time, for just $7.99 per month. The price increases to $9.99 per month for Blu-ray discs.
CNET noted, after speaking with a Netflix rep, streaming will not be included in the plan. If you want eight DVDs out at a time, that's going to be $55.99 per month.
Engadget said a shake-up in pricing might be happening. The tech blog believes combined services will now increase in price from $9.99 to $15.98 per month for it's one-DVD-at-a-time and streaming combination package. The change will be effective Wednesday, July 13th at 9pm EDT, with no grandfathering of plans expected.
As rights to movies and TV shows continue to climb for Netflix, a massive hike of its subscription prices is the quickest and easiest way to keep revenue flow happening.
No word aside from the unlimited DVD deal has come from Netflix yet.
The stock is down about 0.6 percent this afternoon.
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