Andre Yoskowitz
23 Jan 2014 9:36
Following their quarterly earnings report, Netflix has announced that it will move to three pricing tiers for new subscribers.
CEO Reed Hastings and CFO David Wells noted the change, which would be the first time the company had offered more than two price tiers for its streaming service. Say the execs: "Last April we introduced a 4-concurrent stream $11.99 option to begin our evaluation of plan tiering. Since late last year, we have also been testing 1-stream and 3-stream variants, as well as SD/HD variations, at various price points. Eventually, we hope to be able to offer new members a selection of three simple options to fit everyone's taste."
All existing members would get "generous grandfathering of their existing plans and prices," but the company also noted there is no timeframe for the new plans, as the company continues to test different options.
Hastings then added, "We try to make our pricing as straight-forward as possible. But it's not clear that one price fits all."