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Netflix Tests New Price Tiers for Video Service

Netflix is testing new price plans for streaming video as it tries to lure more viewers.

Netflix
Flickr User Jenny Cestnik

Among the plans being tested are a $6.99-a-month plan that allows only one video stream to be watched at once, and a $9.99-a-month plan that allows three streams at one time, whether on a TV, tablet or computer.

A Netflix spokesman says not everyone will see the test prices and they may never roll out to all customers.

Netflix’s standard $7.99-a-month plan allows users to watch video on up to 2 screens at once, including TVs and mobile devices. An $11.99-a-month service allows up to four shows at once. Netflix announced that plan in April.

The Los Gatos, Calif.-based company still offers a DVD-by-mail subscription plan starting at $7.99 a month, though it is trying to move away from the business in favor of delivering video over the Internet.

Netflix subscribers have shown they can be fickle about price changes. The company’s stock plummeted by more than 80 percent from highs reached in 2011 after the company imposed pricing changes that triggered a customer backlash.

Netflix’s stock has since made up all those declines and set a new all-time high earlier this month. On Tuesday, its shares fell $1.89 to $365.10 in morning trading.

Introducing original content, such as the shows “House of Cards” and “Orange is the New Black,” helped Netflix gain new customers this year. Netflix added 1.3 million U.S. subscribers in the third quarter and ended September with 31.1 million.

 

(Copyright 2013 by The Associated Press.  All Rights Reserved.)

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