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Netflix Separates Streaming, Mail-Order DVD Subscription Plans

DOW JONES NEWSWIRES Netflix Inc. (NFLX) disclosed plans to separate its streaming and mail-order DVD subscription plans in the U.S., a move it said better reflects the cost of each plan. Customers who want both both unlimited streaming and to receive one DVD at a time by mail must subscribe to two plans, each for $7.99. Previously, subscribers paid $9.99 under a single plan for the same services. The move continues the Internet movie service's efforts to promote higher-margin online videos as it faces off against Coinstar Inc.'s (CSTR) Redbox DVD-rental kiosks. The company has also said its members are now watching more content streamed over the Internet than on discs delivered by mail. Netflix began offering its first streaming-only subscription plan in the U.S. last November for $7.99, while raising prices for all plans combining streaming service and mailed DVD deliveries. The new pricing will start for charges on or after Sept. 1 for existing members and immediately for new subscribers. Shares were recently up 1.2% to $294.10. The stock has more than doubled over the past 52 weeks. -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com

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