Netflix is testing new price plans for streaming video as it tries to attract more viewers.
Among the plans being tested are a $6.99-a-month plan that allows only one video stream to be watched at once, and a $9.99-a-month plan that allows three streams at one time, whether on a TV, tablet or computer.
A Netflix spokesman said not everyone will see the test prices, and they may never roll out to all customers.
Netflix’s standard $7.99-amonth plan allows users to watch video on up to two screens at once, including TVs and mobile devices. An $11.99-a-month service allows up to four shows at once. Netflix announced that plan in April.
Any move to offer a cheaper service tier would be surprising to some analysts, who expect the company to raise prices eventually to pay for the service’s content.
The lower-priced tier could attract more value conscious consumers, Sterne Agee analyst Arvind Bhatia wrote in a note to investors. But it also could prompt existing customers to trade down, if they cancel and sign back up for the cheaper service.
Netflix, the Los Gatos, Calif.,-based company, added 1.3 million U.S. subscribers in the third quarter and ended September with 31.1 million.
Business, Pages 32 on 01/01/2014