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.
“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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