If you’ve been enjoying paying $9.99 for unlimited streaming and DVDs from Netflix, get ready to pay more — or have to choose between watching movies online or through your DVD player.

Netflix has just announced that it is splitting streaming and DVDs into two separate plans of $7.99 each. For that price, you’ll get either unlimited streaming or unlimited (but one at a time) DVDs. If you want two DVDs at a time, it will be $11.99 per month. Netflix will allow you to combine plans, but offers no discount. So streaming plus one DVD at a time is $15.98/month. Two DVDs at a time will be $17.98/month.

If you’re currently a Netflix subscriber, you have until Sept. 1 before the change kicks in. New subscribers will begin seeing the new rates immediately.

Here’s the explanation from Netflix HQ:

Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail.

What do you think? More importantly, which plan will you choose?

Netflix Introduces New Plans and Announces Price Changes [Netflix blog]

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