NetflixNetflix (NFLX) shares are up around 7% today, to around $185, after the mail-order and online movie-rental company said it's shifting its focus to streaming video and raising the prices of some of its subscription plans, the Associated Press reported.

The company has previously announced that its members are increasingly watching more content streamed over the Internet than on DVDs, thanks to widespread high-speed online access and different gadgets that make it easier to connect your TV to the Internet. Netflix said its introducing its first streaming-only subscription plan in the U.S. for $7.99 a month.

In late September, it launched this service in Canada for C$7.99 a month, and it recently said the service has surpassed initial expectations and encouraged it to accelerate plans for further international expansion in 2011.

"We are now primarily a streaming video company," co-founder and CEO Reed Hastings said in a statement. Netflix says it will spend heavily to obtain the streaming rights to more movies and TV shows.

Netflix's other subscription plans will go up for existing members in January but immediately for new sign-ups. The subscription plan for unlimited movies and TV shows streamed over the Internet and unlimited DVD deliveries, with one DVD out at a time, will increase by $1 a month to $9.99. Prices for other plans allowing for more DVDs out at a time are also going up.

Netflix has more than 16 million members in the U.S. and Canada, and predicted it could enter 2011 with more than 19 million subscribers, doubling the service's size in two years.


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Droopy

Well, Although I am one of the very very few commenting readers who has been a longtime BASIC subscriber to Netflix, I guess my opinions and views regarding their services and products may obviously seem totally contrary to all the negative comments now being spewed on them because of this recently announced subscription hike. Nobody at all likes any kind of increased fees on anything, but despite that, life goes on anyway, and yes, once faced with the increase, we always DO have two options: either DEAL with it and RETAIN what you have, OR opt to NOT renew your subscription and find an alternative source of entertainment elsewhere. As I said, I am in the minority ( for sure ) on the issue of becoming one of the many who now have either quit Netflix or are CONTEMPLATING about quitting . I feel there are a ton of a lot WORSE companies out there with far MORE problems and glitches, many that will STILL seem pale by comparison in contrast to both the status and the abundantly high amounts of subscribers that Netflix has. As far as my OWN experiences with their service over the years, I've been lucky enough to have encountered maybe only a FEW, but they always made good to insure I remained a faithful customer. In so much as Blockbuster Video and other regional STORES of the past, THOSE were the biggest crooks and bandits that truly once dominated and metaphorically RAPED subscribers. In so much as my own opinion about somebody's comment about Netflix being better off dropping their DVD subscription service and offering only direct STREAMING video service, I say if this should happen at any time in the future, then I too will become one of the dissenting new UN-subscibers. For me PERSONALLY, I both want and need that option to accomodate my lifestyle. If Netflix should ever seriously adopt that resolution of discontinuing DVD service by mail, I'd just as soon drop their service and use that subscription money and apply it to my local TV cable company to pick up an extra premium movie channel or two with the newest movie choices.

November 23 2010 at 7:54 AM Report abuse -1 rate up rate down Reply
thescot

Netflix used to boast of unlimited movies for a fixed fee, only problem was that they controlled the flow of movies from them to you and if you were getting too many movies they slowed down the turnaround time. I quit when they did that to me.

November 23 2010 at 6:59 AM Report abuse +2 rate up rate down Reply
vicw41

netflix sucks nothing but old slow loading and terrible quality picture, not worth.99 cents in my opion, one less customer.

November 22 2010 at 11:50 PM Report abuse +2 rate up rate down Reply
bill griffis

they entice u with low rate at he beging when they gotca then they pounce on u with rates increases the amercian way they have to make up lost revenues they are going louse from member cancelations

November 22 2010 at 11:42 PM Report abuse +2 rate up rate down Reply
Zack

I have Netflix, and really dont know why I keep it. The streaming only videos show only old movies and some old tv. Anything that is 2 years old or newer is still in disc only. Redbox shows newer DVD's and more options than Netflix.

November 22 2010 at 11:00 PM Report abuse +2 rate up rate down Reply
Noi or Kelly

Torrents FTW!!!

November 22 2010 at 10:51 PM Report abuse rate up rate down Reply
rskillsta

The best offer would adopt wireless' pay-as-you-go plan towards renting movies and TV shows online. Who wants to get locked into a long-term contract with Netflix to feel obligated to rent junk you really don't want to watch?

November 22 2010 at 10:10 PM Report abuse +2 rate up rate down Reply
rskillsta

How long before the movie studios and television networks say, "The hell with you Netflix! We'll distribute exclusively online and keep all the money for ourselves!"?

November 22 2010 at 10:04 PM Report abuse +3 rate up rate down Reply
bgraff18

Well, I'm a netflix customer that is soon to be an ex customer.. I just recieved my increase notice a few minutes ago... I'm going to discontuine service. In 30 days they will be contacting thousands of people, me included, with "we miss you" offers to entice us back... We have not seen the best deal and the best deal will be the one they offer to regain lost customers...

November 22 2010 at 9:20 PM Report abuse +4 rate up rate down Reply
t71445

Who cares about netflix. Check out Graboid Video. Good deal there. 10,000 MB of movies for $5.00 per month.

November 22 2010 at 8:58 PM Report abuse +2 rate up rate down Reply