Netflix announced changes to its subscription plan Tuesday, sharply increasing the monthly rate for those who want both DVD rentals by mail and the company's streaming content.
Currently, Netflix charges $9.99 per month for unlimited DVD rentals by mail, with one DVD rented at a time, plus unlimited streaming content. Customers access streaming content online, through gaming consoles such as Sony's PlayStation or Nintendo's Wii or via mobile devices.
The new plan, which takes effect for current subscribers on Sept. 1, charges $7.99 per month for DVDs only and an additional $7.99 for streaming. New subscribers will pay the new rates immediately.
For the more than 23 million customers paying $9.99 a month for unlimited DVDs and streaming, the new $15.98 fee translates to a 60 percent increase.
Netflix said the old plan didn't "make great financial sense."
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