Netflix Has New Pricing Plans On The Way

    January 22, 2014
    Chris Crum

Netflix released its earnings report for the fourth quarter today. In a letter to shareholders, the company discussed plans for forthcoming pricing options.

The good news for current subscribers is that they get to keep their current plans.

In the letter, CEO Reed Hastings and CFO David Wells write:

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. Eventually, we hope to be able to offer new members a selection of three simple options to fit everyone’s taste.

If we do make pricing changes for new members, existing members would get generous grandfathering of their existing plans and prices, so there would be no material near-term revenue increase from moving to this potential broader set of options. We are in no rush to implement such new member plans and are still researching the best way to proceed.

That emphasis, by the way, was Netflix’s. That statement should keep a lot of people from freaking out.

The company announced that it has surpassed 44 million members. It expects the number to be above 48 million by the end of this quarter.

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