Today Netflix (NASDAQ:NFLX) launched a new customer pricing plan, featuring a variety of new options for users of the uber-popular DVD rental and streaming service. The company is now offering a low-ball $7.99 DVD only option, down from previous prices of $9.99 per month, though Blu-ray discs and internet streaming are not available at this rate. The $7.99 plan offers customers one DVD rental at a time, but for higher-volume renters the new pricing gets steeper from there.
Business Insider features the full price chart here, and as you’ll see, the new plan really represents a guile attempt to hide a sizable increase in costs the company is pushing onto customers. Taking out 2 DVDs at a time will now cost you $14.99 per month (up $1), where as taking at three per month will cost you an extra two bucks, four DVDs per month will cost another $3, and so on up to an $8 price hike in Netflix’ most expensive monthly plan. Current subscribers will have until September 1st to select a new plan.
Netflix (NASDAQ:NFLX) Executive Andy Rendich commented, “By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members.” The new price plan comes on the heels of recent news that the company will expand its service offerings to 43 new international countries in Latin America and the Caribbean. Markets liked the news today, as investors traded up NFLX stock 1.11% at last check. The company currently trades at a P/E of 84.36 on a total market cap of $15.55 billion.