Netflix Toys With New Price Plans

Netflix New Price Plans

Netflix has announced it is testing a new pricing structure that lowers the monthly rate for streaming video for some customers.

The monthly price for one or two devices has been $7.99. The company is testing a rate of $6.99 for streaming low-definition video on one or two devices. However, customers who want to stream high-definition video or video on more than one device would pay up to $11.99, depending on the number of devices they use, Bloomberg News reported.

The pricing test is designed to see whether Netflix can encourage more customers to pay for the extra content they stream on multiple devices, something not all customers have been doing. But industry experts are waiting to find out whether many customers are willing to pay more for a higher level of service, or whether most would simply downgrade to the $6.99 plan.

The lower monthly streaming rate is not available to all users now, but the company indicated it is something it will roll out to more people if it tests successfully.

Sources
“Netflix Tests Subscription Pricing Based on Number of Users,” Bloomberg News:
http://mobile.bloomberg.com/news/2013-12-30/netflix-tests-subscription-pricing-based-on-number-of-users.html

“Netflix Knocks a Dollar off its SD Streaming Service for New User,” Adweek: http://www.adweek.com/news/technology/netflix-knocks-dollar-its-sd-streaming-service-new-users-154672