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.

  1. A $6.99 individual plan – offers a single Netflix stream at a time.
  2. A $9.99 group plan – offers three streams on one account at the same time.
  3. 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

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