2013 was a big year for Netflix. It got the ball rolling with its immensely popular original series as well as having its subscription users balloon. Now the company is reportedly testing out new prices based on the number of people who can use an account, a move that could see many customers with multiple family members using an account have to pay more.
Netflix is offering some new customers plans that will provide them with access on as many as four screens, letting household members watch different shows at the same time. However, the monthly prices range from $6.99 to $11.99 according to an offer posted on the Los Gatos, California-based company's website, according to Bloomberg.
If this idea is successful, the pricing plans on Netflix subscriptions could be expanded to more customers. The test would suggest that Netflix's more than 40 million subscribers is looking for new ways to combat account sharing, which is the likely cause of a lot of missed revenue.
I am sure that they have the ability to monitor device use," said Michael Pachter, an analyst at Wedbush Securities in Los Angeles, who has an underperform rating on the stock. "I admire their resolve to try to combat piracy. This is an ingenious solution."
The standard and current Netflix subscription price is $7.99 a month.
"We test all the time in an effort to come up with better options for consumers," Jonathan Friedland, a spokesperson for Netflix said in a phone interview with Bloomberg. "There are numerous tests at any given time."
In other words, this could mean everything is about to change for the way people subscribe and use those subscriptions on Netflix coming in 2014. Or, it could simply be just another test that goes nowhere.
Do you share your Netflix account across multiple users? Tell us how this change would affect you and if you'd be on board with it or not. Comment and share your thoughts on the matter with us below.
