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Netflix Reveals Plans To Split Into 3 Pricing Tiers

Monday, February 3rd, 2014 by | Filed Under: Quick Tips, TV Tech

In a 4th quarter letter to shareholders Netflix revealed plans to split their service into three pricing tiers. The popular video streaming service says they have been testing 1-stream and 3-stream variations as well as standard definition and HD price points. This seems like a polite way of informing consumers that their bills are likely to go up.

The company assured current subscribers that they would offer a “generous grandfathering of existing plans” and that they likely wouldn’t raise those consumers rates unless they made some type of change in their plans.

The company also said it will continue to expand its original program offerings. The company currently has nearly 32 million paid subscribers, adding nearly 2 million in the last three months of 2013.

 ~ Cynthia

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4 Responses to “Netflix Reveals Plans To Split Into 3 Pricing Tiers”

  1. James A Petty says:

    Very informative tip. This is the kind of info counsumers would lie to hear prior to it being sprung on them from the company.

  2. Sue says:

    Seems like Netflix raises rates at a steady rate. Use to have 3 DVD’s coming at once, but couldn’t afford that. Down to streaming and that is getting to be ridiculous. Everything costs now.

  3. Jhenni Morrow says:

    Profit margin. That is the story of any service we receive and all prices reflect increasing technology. Consequently, as we become more and more acquainted with “at hand” convenience, expecting immediate gratification, the cost sky rockets and entertainment takes a bigger bite from our limited budget. Some things will need to be eliminated.
    Really appreciate the heads up regarding the inevitable price increase.

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