Based on Wall Street Journal report - Netflix Inc. launched its first Internet-only subscription plan in the U.S. and raised prices for DVD-by-mail plans, continuing its shift from a DVD-rental business to an online video service.
The company, which says its customers now use its Web-streaming service more than its by-mail rentals, will charge $7.99 a month for customers that only want to watch online.
"We are now primarily a streaming-video company delivering a wide selection of TV shows and films over the Internet," Netflix Chief Executive Reed Hastings said.
Netflix shares jumped 8.8% to $188.32 Monday on the Nasdaq Stock Market.
The new service and the DVD price increases indicate the company wants to foster use of online streaming and discourage use of the by-mail rentals. The price increases are higher for plans that involve larger numbers of DVDs out at one time.