Netflix’s streaming business began as a side benefit for DVD customers, not the all-you-can-watch centerpiece it is today. In 2007, subscribers paid for physical discs by mail and received a limited amount of online viewing time based on their rental tier. The price gap between Netflix in 2007 and Netflix in 2026 now illustrates just how radically the company’s business model has shifted.
In mid-2007, a $16.99 monthly plan included three DVDs at a time and roughly 18 hours of streaming. Streaming was effectively an extra feature attached to the rental service, with the online catalog and viewing limits making it feel more like an experiment than a replacement for discs. The arrangement also reflected Netflix’s competitive environment: internet video was still emerging, while Blockbuster was experimenting with its own digital rental offerings.
Netflix soon removed one of the biggest restrictions. In 2008, unlimited streaming became available to customers on qualifying DVD plans, although cheaper rental tiers continued to impose limits. The company then separated the two businesses in 2011, offering streaming and DVD rentals as distinct subscriptions. That decision helped establish streaming as Netflix’s primary product, even as the split triggered backlash from customers accustomed to receiving both services together.
Today, Netflix’s US pricing is built around advertising, picture quality, simultaneous streams, and account-sharing options rather than discs or monthly viewing hours. The ad-supported Standard plan costs $8.99 per month and supports two devices in 1080p. Ad-free Standard is $19.99 per month, while Premium costs $26.99 and adds four simultaneous streams, 4K Ultra HD, HDR, downloads on six devices, and spatial audio. Netflix has discontinued its Basic plan.
That makes the modern comparison more complicated than simply asking whether Netflix got more expensive. The early service charged one monthly fee for mail-order convenience and treated streaming as a limited perk; the current version charges for a massive digital catalog while reserving higher-quality video and broader household access for pricier tiers. Netflix also says memberships are billed monthly, with no annual or lifetime plans, and now defines account sharing around a subscriber’s household rather than an unrestricted group of friends.
For longtime subscribers, the most striking change is not the dollar amount but the product itself. In 2007, streaming was something Netflix added to DVD rentals. In 2026, the discs are gone from the mainstream conversation, advertising is part of the entry-level option, and the company’s premium plans compete on resolution, devices, downloads, and household flexibility. The old 18-hour limit has disappeared—but so has the idea that one inexpensive plan automatically includes everything Netflix offers.
