-->

Netflix Considering New Price Plans for Streaming

Article Featured Image

Netflix's streaming model is based on simplicity, but the company may decide to add a few more options in the coming year. Currently, it offers two streaming-only options in the U.S.: $7.99 per month for streaming on two screens at the same time, and $11.99 for streaming on four screens at the same time. In yesterday's letter to shareholders (written by CEO Reed Hastings and CFO David Wells), Netflix announced it that it is considering adding one-stream and three-stream options, as well as variations for standard-definition and high-definition video.

While the new plans would certainly be introduced to increase revenue, Netflix was quick to point out that "existing members would get generous grandfathering of their existing plans and prices," even marking that passage in bold. The point was to manage shareholder expectations about revenue growth and to avoid the kind of negative publicity that it knows all too well. Despite that, tech sites today are full of stories about the end of the $7.99 plan. Netflix has not announced any new plans or pricing, only that it is exploring the area.

Netflix also announced strong financial news for the fourth quarter of 2013, adding 2.33 million subscribers in the U.S., and generating a net income of $48 million.

Streaming Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

Netflix Streaming Way Up, Rockets 350% in 10 Quarters: TDG Report

International markets are still a small percentage of Netflix's total output, but that's sure to change in the coming years.

Netflix Crosses 50M Subscriber Threshold During Q2 2014

Original video is helping the SVOD service stand apart, and international expansion is driving customer growth.

Don't Count Amazon Out; Three Reasons Why it Could Beat Netflix

Media outlets have been quick to crown Netflix the king of SVOD, but Adobe says not so fast -- here are three things Amazon has in its favor.

CES 2014: Netflix Says Consumers Unclear on UHD Benefits

Unless the industry decides on greater UHD improvements and educates buyers, UHD TV will be reduced to a resolution number.

The Netflix Way: Learning from Failure, Constantly Innovating

When Blockbuster laughed at a partnership proposal from Netflix in 2000, it jumpstarted one of the most revolutionary companies of our time.