Netflix is Testing U.S. $7.99 per month Streaming-Only Plan

A reader sent in some screen shots of a $7.99 per month U.S. streaming-only subscription plan that Netflix is testing (covered here last week). This new plan is a dollar less than the current $8.99 unlimited streaming with one DVD at-a-time, so the new plan with one DVD costs $1 more.

Here's another view of the offer:

Would you drop DVD delivery for a streaming-only plan?

Thanks also to Wisemonk for confirming the story.

Comments

[Sherri]

Would and did!

[David]

Is Netflix about to raise prices? That DVD plan is $9.99. I'm assuming it's for 1 out at a time. I'm paying $8.99 for that now.

[Scarlettopia]

I had the same question, David. I'd be surprised if people on the $8.99 plan downgraded just to save $12/year. But if they're about to raise the price of the basic plan, I can see people being swayed.

[Sean]

I think what they should do is this

the $4.99 plan it should be this

2 dvds for the month + unlimited streaming on any device

[Mike]

How do you think they are paying for the $1 billion Epix fiasco?

[Satorical]

Why is the Epix purchase a fiasco? How else do you think Neftlix is going to get more content other than by paying for it? I guess they're making a tiny bit from co-marketng (like that annoying little ad at the beginning of movies on the iPhone app), but that isn't enough.

[BP]

@ Satorical

Crappy selection? No HD? Limited availability? A billion dollars?

Take your pick.

[SVXport]

Garbage pick up costs $21 per month.

[Scott]

It may not necessarily be a $1 increase from the current $8.99 plan, it may be a different plan. The $8.99 plan only permits streaming to one device at a time (i.e. two people can't stream different things in different rooms at the same time). Currently, you need to be on a 2-out plan to get streaming into 2 devices at once, and 3-out for 3. Does anyone know about simultaneous multi-room streaming support on these new plans?

[ArmorForVictor]

@scott i'm on the $8.99 plan and stream to a Wii and my PS3 at the same time that limit is false you can stream to mutiple devices no matter what #DVD out plan your on

[fisty]

@Scott, The streaming-only plan allows for up to four simultaneous streams.

[losan]

How can I switch to Streaming-Only Plan?

[Larry Dallas]

No, I still want new releases and many of the stuff that will NEVER air be streaming.

[Tim]

I agree with Larry. And besides wanting new releases when they become available (now 28 days after release), I want high-quality video for some movies. Streaming is nice, but it still can't match Blu-ray.

[BoB]

If everything was available as a streamer, I would drop the dvds in a second, but that is not the case now.

[Tomguy]

I will still maintain my 2x + streaming.

Many newer titles are not available on streaming.

At some future date, DVDs will be just a memory and all titles will be streamed.

[Mela]

I pay 10.99 for one out with blu-ray and streaming. I hope that price doesn't increase if the base plan increases.

[Ivan]

it does look like the 1-DVD plan is increasing to $9.99, which I will be fine with if they got rid of the premium fee for Blu-ray.
I would probably switch to a streaming only plan for a few months just to work on getting my queue size down...I current have 400+ in my Instant Watch queue and about 200+ in my DVD queue.

[scJohn]

Is that $9.99 plan 1 DVD out at a time? And I guess if you want BD then that's $2.00 a month addon.

Unless NF is willing to change their business model ( I don't think they are) to pay per view for new releases, then the majority of people will still want a DVD/BD option.

I will not be surprised to an across the board price hike in 2011. The Starz contract is up for renewal in 2011 and after the the Epic deal I do not see Starz settling for the reported $20-30 million per year that they now get.

Considering there is no HD for Epix (yet) and you do not have full access to their current catalog, NF overpaid.

With the current NF and content owners business models being what they are. NF streaming is only going to be for catalog titles. Epix excluded.

[Neek]

If it costs $1 to ship a dvd vs 5 cents to stream, why not make a streaming only deal cheaper? 5.99/6.99 and people would have no excuse not to sign up to start using their new Christmas presents to stream Netflix and join the club. Anyone going from DVD to just streaming would save Netflix money on postage and dvd costs and hiring people to handle the dvds--they'd break even at 3 dvds not being shipped per membership a month.
I know, why charge Americans less when they get more content? Because--we're spoiled, we're cheap, and we're really skeptical (and it used to be the Canadian dollar was a fraction of ours).
Netflix has the gain with R&D and product placement. I thought the goal was to now get new subscribers.
Why not offer pay per view for new releases? It's better than Cinemanow getting the 5.99 (for ONE RENTAL!!!). Don't be a Blockbuster and say PPV is not a worthy threat.
I have had to show people how cool and worthwhile the streaming is, and then they really want to get an account and consider chopping cable (the true long-run competition). What do we get for that if they raise our prices (and take away friend features that made it practically another Facebook)?
The customers are your best salesmen, and should be rewarded--and listened to. We are cult-like supporters--even if we're spoiled *self-centered* and cheap.
I love Netflix. Obviously others on here do too, or this forum wouldn't exist. Keep that love alive by keeping Netflix an outrageously good deal for members (which I still think it is).

[Nick Picone]

I am seriously contemplating dropping discs from the plan and going streaming only. Redbox serves all my new release needs (stop by one at 630am on Tuesdays, have what I want, so no 'Very Long Wait' BS) and the past discs I've gotten from Netflix have sat on the shelf for 2 weeks, unwatched, and sent back..

[Shawn]

Yeah Netflix overpaid for Epix, I can't believe they were willing to pay so much for so little.

Doing a little math: $200 million per year divided by 17 million subscribers = $11.76 per subscriber per year or $.98 a month.

You can see why they raised it $1 per month.

[Seth]

Netflix will probably lose Starz so they needed the Epix deal bad.

Starz screwed up badly and gave Netflix rights for a song. When the renewal comes around, there will be probably not be a deal to be made. Whatever they ask will be insane based on their feeling they got screwed the first time around.

Netflix needed Epix.

[Frank22]

Neek, I don't think Netflix can lower the price to $6 for just streaming because they are anticipating higher licensing costs, indeed are realizing higher licensing costs. If they want streaming to become the future they need to focus on higher quality content. Even if the costs were less NOW, if they lower prices and end up needing to raise them later they will get a severe backlash, remember Blu-Ray? You also don't know what they have in store for the immediate future. Lowering the price lowers the perceived value, not a good move.

[RJM]

They want BRAND NEW CUSTOMERS and if they can rake in a million customers to pay $7.99, thats $8 million in brand new revenue. And some will swap UP.

I just wish someone could tell me HOW to get a wireless netflix device without wireless computer ?

Id buy it.

Seems like Im going to have to wait for a new computer to get one, something I want to put off a year or two if I can.

[FearNo1]

The streaming only plan should be cheaper e.g. $5.99 per month. That would have been an irresistible price. The $1 increase basically pays for the Epix deal, which they paid too much for. I hope netflix can keep the Starz content as the streaming deal will be ending soon.

@Satorical
I have not received an ad when streaming to my Touch.

@RJM
The consoles XB360 and PS3 will soon support wireless netflix streaming without the need of PC since search will be added. If you have an ipod touch, you can use the netflix app to manage the IW queue without the need of a computer.

[Bad_Boyfriend]

Streaming doesn't cost 5 cents. It costs 5 cents plus the licensing fee, which in some cases is as high as $4 per title. $1 more a month for Netflix is still way better than $90 or more for cable, no matter what plan you're on.

[David]

RJM: You don't need a wireless computer, but you need a wireless router attached to your internet connection, like a modem. Sometimes, routers and modems are combined into one device. You'll also need the Roku box or some kind of Netflix compatible player attached to your tv. If you're accessing the internet on your laptop through wifi, use the same password on the Roku (or whatever box) settings.

[Seth]

"Streaming doesn't cost 5 cents. It costs 5 cents plus the licensing fee, which in some cases is as high as $4 per title."

Source?

[Netflix Fan]

The Roku HD streaming player ($59.99) delivers video in high-definition and features built-in wireless and Ethernet for easy broadband connectivity anywhere in the home. The new Roku XD ($79.99) and XDS ($99.99) models add 1080p HD support (delivered over HDMI) and extended-range Wireless-N. In addition, the XDS model features dual-band Wireless-N technology and USB playback.

Netflix is a great deal folks! We used to go to Kmart/Walmart and pick up a couple dvds a month. Netflix is cheaper than even 1 dvd. I bought stock in them too! My stock went from $110 a share to over $150 a share. Folks, don't you see what you got right under your noses? A GREAT deal! I suggest everyone buy stock now. This company recently got into Canada. They will keep making more and more money the more they spread. Think about it!

[Bix]

RJM-

What do you mean by wireless computer? You just need broadband internet and a wireless router.

[Roy]

@RJM,

Are you talking about using a wireless NRD without setting up your account first on a computer? Or are you talking about, once your account is set up, being able to use a wireless NRD? The latter should be quite easy -- I log into my Netflix account via a PC at most once a month or thereabouts, and just use my PS3 (been using the discless approach for about 2-3 months) for all my actual Netflix use.

[Brett]

RJM, If you want a wireless netflix device, you can get an Apple TV for $99, iPad or iPod Touch.

[mumsp]

Or you can go with one of the hundred or so non-Apple products of which netflix has partnerships....

f'in fanboys, lol

[RJM]

Thanks for the responses guys. I know little to nothing about wireless. I just WOULD LIKE to be able to watch streaming from my easy chair on my TV rather than at my desk on my computer.

I dont have xbox,an elaborate cell phone or anything like that.

So, WHAT wireless router do I buy and which Roku device ?

Thanks

[Crow550]

Don't let this streaming only plan succeed unless you want to pay more for DVDs/Blu-Ray....

$9.99 for 1 dvd at a time? No thank you!

$7.99 for streaming only?

Just use the 1 at a time plan and not add any dvds to the dvd queue.

Unless you want raised rates.

You hold the money for these companies. You have the power.

[whodat1]

I see people commenting that many newer titles are not available for streaming. I can understand this as it has to do with contracts that they have with the production companies. What I don't understand is why many of the older titles they have (and have had for years) are not streamed??? Movies like "Casablanca" and "Angles with Dirty Faces".

Why don't these old classics get streamed???

[Jacob]

I still don't have the option to upgrade/downgrade to a streaming only plan though it is displayed on their home page if I'm not logged on.
Does anybody else have this option?

[true religion]

The great use of life is to spend it doing something that will outlast it