Briefcase

Netflix raises prices for DVDs and streaming

RALEIGH, N.C. – Netflix Inc. has announced they are changing their subscription plan in a way that sharply increases the monthly rate for those wanting both DVD rentals by mail and the company’s streaming content.

Currently, Netflix charges $9.99 per month for unlimited DVD rentals by mail, with one DVD rented at a time, plus unlimited streaming content. Customers access streaming content online, through gaming consoles such as Sony’s PlayStation or Nintendo’s Wii, or via mobile devices.

The new plan, which takes effect for current subscribers on Sept. 1, charges $7.99 per month for DVDs only and an additional $7.99 for streaming. New subscribers get the new rates immediately.

Netflix said the old plan didn’t “make great financial sense” for them.

McClatchy

Oil imports drive up U.S. trade deficit in May

WASHINGTON – The U.S. trade deficit surged in May to the highest level in more than two and a half years, driven wider by a big increase in oil imports and a decline in exports.

The Commerce Department said Tuesday that the deficit increased 15.1 percent to $50.2 billion in May. That’s the largest imbalance since October 2008.

Exports declined 0.5 percent to $174.9 billion. Imports rose 2.6 percent to $225.1 billion. Oil prices have fallen since May, so the effect of higher prices should ease some in the coming months.

The deficit is running at an annual rate of $563.2 billion. Analysts said the wider deficit in May means that the economy probably grew at an even slower pace in the April-June quarter than they had previously forecast. Paul Dales, chief U.S. economist at Capital Economics, said he was now looking for economic growth of around 2 percent in the second quarter.

The deficit with China jumped to $25 billion, the largest monthly gap since November.

Associated Press

Moody’s downgrades Ireland’s bonds to junk

BRUSSELS – Moody’s Investors Service on Tuesday downgraded Ireland’s government bond ratings to junk, dealing a further blow to the eurozone as it struggles to contain a worsening debt crisis.

Moody’s said it cut Ireland’s rating by one notch to Ba1 from Baa3, because it sees a growing risk the debt-ridden country will need a second bailout once its current rescue package expires at the end of 2013. The outlook for Ireland remains “negative.” Banks and other private investors will likely be asked to contribute to any new bailout, for instance by giving Ireland more time to repay its bonds, Moody’s said.

Associated Press

Target snags exclusive for new Google e-reader

MINNEAPOLIS – The war of the e-book readers heated up Monday when Target Corp. said it will be the exclusive U.S. retailer for the first device that accesses the Google e-book library via Wi-Fi.

Target will have a six-month exclusive on the Story HD, which will compete head-on with the Barnes & Noble Nook, Amazon Kindle, Sony Reader and more than 70 lesser-known e-book readers.

The Target e-reader, from the California company iriver, costs $139.99 and will be available in stores beginning Sunday.

McClatchy