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Netflix Tests Per-User Pricing

Move seems designed to reduce account sharing
By Kevin Spak,  Newser Staff
Posted Jan 2, 2014 8:52 AM CST

(Newser) – Netflix is trying out a new payment scheme that will make users pay for each screen they want to stream to simultaneously. Some new customers are being asked to choose between a one-user, one-screen option for $6.99, a two-screen plan for $7.99, and a four-screen plan for $11.99, Bloomberg reports. The move seems to be an effort to crack down on account sharing and generate more revenue from families.

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The risk, of course, is that some users on the current $7.99-per-month standard streaming plan would downgrade to $6.99. "That all comes out of their profit margin," says one analyst. "This is not the next pricing move investors were expecting." But the Verge notes that the $6.99 option is for standard definition viewing only, which could turn off many HD-loving customers. "Not everyone will see this and we may never offer it generally," a spokesperson added, while confirming that some users are also seeing a $9.99 three-screen option. (Read more Netflix stories.)

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