This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will You Pay More for Netflix?

NEW YORK ( TheStreet) -- Netflix (NFLX - Get Report) is changing its pricing strategy yet again, this time separating its DVD and streaming services into two separate memberships.

Users who currently have unlimited DVD rentals (one at a time) and access to streaming content will have to pay $16 per month to continue receiving access to both. This compares with the original price of $9.99.

Users also can get unlimited DVD rentals (one at a time) for $7.99 per month, or unlimited DVD rentals (two at a time) for $11.99. The $7.99 package for streaming content will remain the same.

These rates are effective immediately for new subscribers and will go into effect in September for existing customers.

Netflix

"An increase of this size is unprecedented, but is consistent with recent management comments that suggest Netflix was not satisfied with the current DVD economics," Janney Capital Markets analyst Tony Wible wrote in a note. "The move may also validate our liquidity analysis, which suggests Netflix would need to increase cash flow to fund the $2 billion in upcoming off-balance sheet obligations."

While consumers may be outraged over the price hike, Wall Street is praising the move, sending shares of Netflix up more than 1% in afternoon trading.

Earlier in the week, Netflix hit an all-time high of $301.50. The company recently announced it is expanding its streaming service into 43 countries in Latin America and the Caribbean.

Will you pay more for Netflix? Take our poll and see what TheStreet's readers are saying.


Will you pay for Netflix's DVD and subscription services?

Yes -- I am willing to shell out more for both services.
No -- I will just subscribe to one of the two.
No -- I will cancel my membership alltogether.

- Reported by Jeanine Poggi in New York.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NFLX $620.00 -0.48%
AAPL $129.48 -0.81%
FB $79.79 -0.62%
GOOG $532.17 -0.34%
TSLA $247.14 -0.93%

Markets

DOW 17,941.08 -99.29 -0.55%
S&P 500 2,105.85 -5.88 -0.28%
NASDAQ 5,062.16 -20.7690 -0.41%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs