"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."

The company is going to charge $7.99 for unlimited online streaming and $7.99 for the by-mail DVD plan. Previously it had cost only $9.99 a month for both services together.  A standalone DVD rental plan will let subscribers check out two discs at a time for $11.99 per month while the $7.99 plan allows only one.

Existing users who currently receive both services have until September first to choose a plan, otherwise Netflix will assume you want both plans.