Netflix Tests New Pricing Tiers

The test pricing is only available to new users and provides cheaper plans for cost-conscious customers.
Posted at 2:36 PM, Dec 31, 2013

Netflix is testing new price tiers for its streaming video service in a move that some say will curb password sharing.

The experimental pricing structure, available only to new users, offers plans that provide access on as many as four screens. (Via Businessweek)

The test prices could entice more users, as Netflix plans to expand to a broader customer base who seek affordable services. (Via TopNewsAdweek

New subscribers can choose to sign up for a single-screen, standard-definition streaming plan for $1 less than the high-resolution, two-screen service available to current subscribers. (Via Adweek)

Referring to the recent option, a representative for Netflix says: "We are always testing new things. … Not all people will see this option and it may not be something we ever offer generally."

​An estimated 10 million users could be streaming video services without paying, which is why Netflix stockholder Michael Pachter favors the venture. He "admire[s] their resolve to try to combat piracy. This is an ingenious solution." (Via Washington Examiner, Businessweek)

A writer for TechCrunch speculates the latest plan might cater to those who typically watch content on their smartphones, where definition quality is less important.

The test pricing is a far cry from Netflix's previous restructuring that angered customers.

Two years ago, Netflix split its streaming and DVD-by-mail services into two separate plans, increasing subscribers' monthly rates by about $6. (Via Wired, The Washington Post)

Although the move caused Netflix to lose 800,000 customers in 2011, the video giant bounced back and surpassed HBO's domestic subscriber base this year with 40 million subscribers. (Via PC Magazine)

If the test prices are successful, they could be expanded to more customers in the future.