Netflix has offered its first streaming-only subscription plan for the U.S. for $7.99 a month. The existing unlimited streaming/DVD plans will see their cost raised.

Gabelli & Company analyst Brett Harriss says this is the first step in phasing out the DVD-by-mail business. “For a while, the goal of the company was to change its business model from DVDs to streaming because it recognizes the DVD has a limited shelf life at this time and streaming has higher margins,” Harriss said.