As Netflix is maturing its video streaming service, the company is expected to be of worth $2.2. billion by the end of this year.  Although it is offering the on-demand video service to make a competitive position in the industry, we now learn about the price increase in its streaming-only DVD rental plans.

“We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet,” Reed Hastings, Netflix co-founder and CEO said in a statement.

The  new plan will be priced at $7.99 per month with no DVD rentals and will allow the customers to watch the television episodes and movies using the video streaming service. While Netflix keeps the price competitive for video streaming, it has escalated the prices for DVD rentals.

The company has increased the prices of its two most popular DVD rental plans by $1. So, the one and two-DVD at a time will now be priced at $9.99 and $14.99 per month respectively. Besides, price changes will even be higher for higher plans. Three DVD rental price will be $19.99 and four-DVD price will be $27.99 from $16.99 and $23.99 respectively.

To stay competitive in the on-demand video space service industry, Hulu has also cut down its prices. The company is making full efforts to compete with Apple, Google TV and Netflix. It cut down $2 from its video streaming plan making it equivalent to that of Netflix’s. This increasing competition is surely hitting the cable industry hard, and has already started disrupting it on a large scale.  In other news, unsurprisingly, Netflix CEO Reed Hastings has landed a cover on Fortune Magazine, as the Businessperson of the Year.