Netflix Raises Prices On Some Subscription Plans

LOS GATOS, Calif. (AP) -- The company said Monday that its subscription plans for unlimited movies and tv shows streamed online and unlimited DVD deliveries --with one DVD out at a time-- will increase by $1 a month to $9.99 for Sacramento residents. Prices for other plans allowing for more DVDs out at a time are also going up.

Netflix is also launching a $7.99 streaming-only plan in the U.S. to accommodate the online shift.

"We are now primarily a streaming video company," Co-founder and CEO Reed Hastings says.

Netflix shares jumped 5.6 percent in premarket trading.

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