Netflix Prices Settling Into Three Tiers
For regular Fairer Platform readers, this isn’t news. Rather it’s confirmation of something we already knew — that Netflix prices are congealing around three tiers of service. Here’s the all but official and finalized dish.
GigaOM, ever a great source of cord cutting news, is reporting Netflix has all but made it official — the leading on-demand video streaming will offer three tiers of service.
“Last April we introduced a 4-concurrent stream $11.99 option to begin our evaluation of plan tiering. 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,” wrote CEO Reed Hastings and CFO David Wells in a Netflix press release. “Eventually, we hope to be able to offer new members a selection of three simple options to fit everyone’s taste.”
We first got wind of the move late last month when Netflix began offering a single-screen $7 SD video tier to new customers. If the policy holds, Netflix prices will be set at $7, $8 (2 HD streams) and $12 (4 HD streams).
Additionally, Netflix announced back in September that Ultra HD video would be available to HD customers with connections fast enough to support that level of quality. In practical terms, few qualify, but it’s one heckuva gesture and a wedge Netflix can use to drive the adoption of faster broadband speeds.
Liking Netflix prices more than ever or do you need more than a token dollar discount at the low end?