(Image source: Gizmodo)

BY TRACY PFEIFFER

ANCHOR MEGAN MURPHY

You're watching multisource tech video news analysis from Newsy.

Netflix has announced a steep price hike for its DVD packages -- stirring up debate over its future and fomenting consumer ire.

The Wall Street Journal describes it this way: “Netflix customers subscribe to unlimited screaming.”

The updated plans mean customers who subscribe on an either/or basis - either DVDs or streaming - will see their bill shrink.

But those with both -- will get a price spike.

Portland’s KATU explains.

“The company is separating unlimited DVDs and streaming options into two separate plans. Unlimited streaming will cost 7.99 a month. Now, DVD plans will cost 7.99 for one DVD or 11.99 for two at a time. So if you have that combo plan right now, your bill go from about ten bucks to sixteen dollars a month or more.”

GigaOm’s Ryan Lawler says -- the move makes sense, as it will give the company better control over costs associated with streaming or disc-mailing plans.

“By forcing subscribers to choose, it’s likely betting that most will go streaming-only, thereby lowering the infrastructure costs of supporting them. As we wrote last year, the real cost of its streaming service isn’t defined by video storage...but in the acquisition costs that come with it.”

But Streaming Media’s Dan Rayburn says -- if you’re going to hike the price, you better improve the product. He notes-- the streaming service still leaves him wanting.

“In January of 2008, Netflix confirmed it had about 12,000 titles available for streaming. In September of 2009... 17,000. Today, it appears that Netflix has about 20,000 titles for streaming...If that number is accurate, it means that at any given time, Netflix has only added about 4,000 pieces of content a year for the past two years. That's not a lot of content.”

Still -- Citigroup analyst Mark Mahaney argues -- the new changes suggest Netflix’s main emphasis nowadays is streaming -- not DVDs -- and that could mean great things for its streaming catalogue.

MARK MAHANEY, CITIGROUP ANALYST: “The fact that you and I are now going to ship back and forth fewer DVDs -- that saves up, that frees up money for Netflix instead of sending 90 cents to ship that DVD back and north, they're going to spend five cents - and those are declining costs - to stream it to you. Secondly, they've always been buying film content from the studios. They’ve always been one of the largest customers. Instead of buying a whole bunch of DVDs and storing them, they'll be buying digital streaming rights.”

New subscribers can expect to pay the updated rates -- but existing customers won’t see their bills change until September 1.

'Like Newsy' on Facebook for more tech video news in your feed.

Transcript by Newsy.