Netflix is a dot-com venture and is a middleman between the content provider and consumer. It means they provide streaming and DVD mailing services to the customers and take charges on it. Due to the demand of streaming video, content provider decided to increase the price. On the other side, Netflix has announced to separate its DVD-by-mail service and streaming service and set up their own sites with their own terms and condition.
Recently Netflix has increased the price of DVD mailing service and streaming service. Earlier the cost of this both plans was $9.99 per month while in new policy each plan costs $ 7.99. So, there is a total 60 percent price rise. Because of this increased price, they may lose approximately 1 million existing customers. Though they will lose customers, they will get more money per customer due to increased price. There is also a chance that existing subscribers move to competitor. After increase in the price, the company anticipates now 21.8 million subscribers for its streaming-only service and 14.2 million subscribers to obtain DVD plans.