Netflix Rejiggers Its Pricing Structure

Depending on how you look at it, Netflix either raised or lowered its subscription rates today. The company eliminated its popular $9.99 per month plan that included both streaming video and DVD rentals. That plan goes to $15.98 on Sept. 1.

On the other hand, Netflix launched two new "unlimited" DVD-only plan in the U.S. (no video streaming with these plans).

• The first "unlimited" plan allows the user to have only one DVD out at a time. That costs $7.99 a month.

• The second "unlimited" plan allows the user to have two DVDs out at a time. That costs $11.99 a month.

What's so unlimited? Well, see, you can have an unlimited number of DVDs – but only one or two at a time, depending on the plan. It's sort of like an all-you-can-eat plan that limits you to one plate.

If you want both streaming and DVD, there's the $15.98 plan, which includes unlimited streaming as well as DVDs by mail.

There's still an unlimited streaming-only plan, which remains at $7.99 per month.

Who's on first?

"Netflix members love watching instantly, but we've come to recognize there is still a very large continuing demand for DVDs by mail," said Andy Rendich, Netflix Chief Service and Operations Officer. "By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members."

What's this all about?

It's mostly about all the money Netflix is spending to buy the rights to stream more current movies and TV shows, something subscribers are getting pretty vocal about.

Besides keeping current customers content, Netflix faces a growing roster of competitors in the streaming sector, most notably Hulu Plus, which offers a $9.99 streaming service that features newer shows but, overall, a smaller library.

Is the day not far off when consumers will have to sign up for multiple streaming deals to have a reasonable chance of finding the series or movie they want to watch?

Well, actually, it's already here. Hulu, Amazon, Netflix and a host of others offer some of the same titles but each has its own strengths and for those who are glued to the big flat screen, the monthly tab goes nowhere but up.