OnDemand WTP Pricing Research

Netflix’s Latest Price Test Could Be Bad News for Password Sharers | TheStreet

Earlier this week, CordCutting.com and Italian site TuttoAndroid reported that Netflix is testing a pricing overhaul in European markets in which the company would launch an “Ultra” subscription plan that has the features of its current Premium plan, which costs €14 ($16.35) per month in a slew of European markets and $14 per month in the U.S. Like the current Premium plan, the Ultra plan lets accounts play up to four streams at the same time in either HD or (if a particular show or movie supports it) 4K resolution.

Notably, the Ultra plan is priced at €17 ($19.86) per month in the test. The Premium plan is still being offered, but only supports two simultaneous streams instead of the four that Premium subs currently enjoy. And Netflix’s popular Standard plan — which costs €11 ($12.85) or $11 per month in the U.S. and supports HD (but not 4K) streaming — only supports one stream in the test, rather than the current two.

Users seeing the test aren’t witnessing any changes to Netflix’s Basic plan: It still costs €8 ($ 9.34) per month in Europe and $7.99 in the U.S. and supports one standard-definition stream.

A Netflix spokeswoman confirmed the test to CNET. “In this case, we are testing slightly different price points and features to better understand how consumers value Netflix,” she said.

Clearly, if Netflix rolled out the pricing revamp on a large scale, Standard and (to some extent) Premium subs who are sharing their login credentials with other households would need to either think twice about doing so, or upgrade to a more expensive plan. And judging by both surveys and anecdotal evidence, the number of Netflix subs faced with that dilemma could be meaningful.

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Netflix’s Latest Price Test Could Be Bad News for Password Sharers – TheStreet.

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