Netflix said today it is introducing a $7.99 streaming-only subscription plan in the United States, the first time it is offering a full streaming-only option in the U.S.
"We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet," said Reed Hastings, Netflix co-founder and CEO.
"Today's action reflects the tremendous customer value we've injected into streaming from Netflix, our initial success with a pure streaming service in Canada for $7.99 a month and what our U.S. members tell us they want."
Netflix also said it is increasing its prices on its 1 DVD out at a time and 2 DVDs out at a time by $1 a month. Prices of subscription plans allowing for more DVDs out at a time will also increase. Price changes take effect now for new members and in January for existing members.
Netflix it has not introduced a new plan for DVDs by mail because more members are already watching streamed instantly over the Internet than on DVDs. The company say it expects that trend to continue.