Jefferies Comments on Netflix Streaming/DVD Price Adjustment

Netflix NFLX “will no longer be offering plans that include both unlimited streaming and DVDs by mail,” Jefferies reports. “Unlimited DVDs for one out-at-a-time (no streaming) will cost $7.99/mo, and 2 DVDs out-ata- time (no streaming) will cost $11.99/mo,” Jefferies writes. “Unlimited streaming (with no DVDs) will remain unchanged at $7.99/mo. Subscribers will now have a choice between streaming only, a DVD only plan, or the option to subscribe to both. The new pricing will take effect immediately for new members and on 9/1/11 for existing members. “On Netflix' blog, the company noted that the change will separate the plans to better reflect the costs of each, helping ensure a long life for DVDs by mail. The site further noted that treating DVDs as a $2/mo add-on to unlimited plans didn't make much financial sense given shipping/ postage costs.” Netflix closed Tuesday at $291.27.