Tiered Pricing Coming to Netflix?

Jan 23, 2014


According to the letter Netflix sent to shareholders in the last quarter of 2013, it is exploring tiered pricing options, but only for new members. In April of last year, Netflix introduced a 4-concurrent stream option for $11.99 to "begin our evaluation of plan tiering." Now, Netflix is looking at adding more tiers. 

According to the letter:

"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." 

Netflix CEO Reed Hastings and CFO David Wells (who wrote the letter) say they are in no rush to implement this pricing change, and that current users' pricing plans will be grandfathered in when the change is eventually made.