If Netflix increases fees will you continue to subscribe?
http://mobile.businessweek.com/articles/2014-01-24/netflix-mulls-additional-pricing-tiers-and-a-basic-fee-increaseThree years after Netflix increased its prices and sparked a painful backlash that savaged its share price, executives at the online-video service are once again testing various prices and streaming combinations beyond $7.99 per month for new members.
Last spring, Netflix started an option aimed at families to allow four simultaneous streams for $11.99 per month, and the company has been testing different prices for standard resolution, high definition, and concurrent streaming options. In December, the company began a $6.99 monthly plan that allows streaming to only one screen, and executives spoke of their efforts to find a three-tier “good, better, best” pricing plan.
“It’s not clear that one price fits all,” Netflix Chief Executive Officer Reed Hastings said on Wednesday during the company’s quarterlyearnings chat, which it streams on YouTube, declining to discuss “the dozen type of things” Netflix could do to segment its offerings. “The trick is not having too many factors, keeping it understandable—and really, that it feels fair and resonates with consumers.”
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