The plan, which allows members to instantly watch unlimited movies and TV episodes streamed from Netflix to computers and televisions is available now to both new and existing members.
"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."
In late September, the company introduced its service in Canada, allowing members to instantly watch unlimited movies and TV shows streamed from Netflix for C$7.99 a month.
Netflix said instantly watching movies and TV shows streamed over the Internet has become the preferred way members enjoy the service -- in this current quarter, members will watch more content streamed over the Internet than on DVDs.
Because of this, Netflix plans to invest more money to license streaming content than to acquire DVDs.
Currently, the list of available streaming content grows due to Netflix's licensing agreements with NBC Universal, Warner Bros., 20th Century Fox, EPIX, Relativity Media and Nu Image/Millennium Films.
Netflix members also have more ways to watch streaming content, via Microsoft's Xbox 360, Nintendo's Wii and Sony's PS3 consoles, iPhones and iPads, Blu-ray disc players and Internet-connected televisions like Apple TV and Google TV.
Members who still prefer to watch their movies and TV episodes on DVD will have to pay a slight increase for the privilege.
Starting after the new year, monthly subscription rates on Netflix's DVD delivery service will increase anywhere from $1 to $8 a month, depending on the plan.
The Limited Plan, which limits two DVDs per month and does not include streaming content access will stay the same price.
Jessie Becker, Netflix's VP of Marketing said on the site's official blog the company is responding to the growing numbers of members who watch steaming content.
"The fact is that Netflix members are already watching more TV episodes and movies streamed instantly over the Internet than on DVDs, and we expect that trend to continue. Creating the best user experience that we can around watching instantly is how we're spending the vast majority of our time and resources."
