Netflix Considering New Price Plans for Streaming
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.
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