Netflix's price hike went into effect on Sept. 1, marking the biggest rate increase in the company's history.
Netflix separated its popular unlimited streaming and one-DVD-out-at-a-time plan, making both service $7.99 each per month. This brings the combined package to $15.98 from $9.99 per month, a 60% bump.
"We know our decision to split our services has upset many of our subscribers, which we don't take lightly, but we believe this split will help us make our services better for subscribers and shareholders for years to come," Netflix said in a statement.>Why Netflix Prices Are Still Cheap This is the second time Netflix raised prices in less than a year, taking up its one-DVD-at-a-time and two disc plan by $1 per month. Netflix's price increases come as the company looks to transform to a streaming operation from its roots as DVD-by-mail company. The hope is, these price hikes will allow Netflix to spend more money on streaming content, which has become costlier as new players enter the market. -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.