Netflix plans to increase prices in 2014?
Last year Netflix learned a hard lesson when they announced a 60% increase in prices. Subscribers left and apologies were given. Now the company is taking a different approach to testing different pricing options, which may lead to higher fees for many people.
The new pricing structure, which Netflix states is only a test option, could be a way to stop the estimated 10 million ‘moochers’.
The company is set to offer different membership levels for some people who sign up for the service.
- A $6.99 individual plan – offers a single Netflix stream at a time.
- A $9.99 group plan – offers three streams on one account at the same time.
- A $11.99 a month – offers four steams on one account at the same time.
“Whether we offer any of these tiers generally will depend on the results of the tests,” Joris Evers, a Netflix spokesperson, wrote in an email to Huffington Post.
Netflix’s stock price skyrocketed in 2013. It was the highest performing stock in the Nasdaq 100 and S&P 500, according to the Wall Street Journal, which named Netflix among its five best stocks of the year. On Monday, the company announced Hastings would get a 50 percent raise over 2013, earning $3 million in salary and $3 million in a stock option allowance.
Either way, Netflix is combating piracy and trying to monetize what is a commercial success and a definite challenge to cable and satellite companies.
Source: Huffington Post