Netflix tests new price tiers, including $6.99 for single-stream

Netflix tests new price tiers, including $6.99 for single-stream
A screen shot of Netflix's online streaming video service. (James H. Collins / Associated Press)

Netflix is trying out new prices for its online video service, including a tier that costs customers $6.99 a month -- $1 less than its standard version -- to play content on just one screen at a time.

The offer is available to some new customers and may not be expanded to include everyone, the company said. Netflix is also experimenting with a $9.99-a-month version to stream video on three screens simultaneously. A company spokesperson said the new offers may never be expanded to everyone.

The test is part of Netflix's attempt to increase the amount of revenue it generates from households that use the service on multiple devices, including personal computers, smartphones, tablets and Roku boxes.

The Los Gatos company's standard price is $7.99 to play on two screens at once and the top tier, announced in April, allows four streams at once for $11.99 a month.

"Netflix is trying to raise prices, and hopes that few of its customers will opt for this lower priced tier, and more will be forced into a higher tier," said Michael Pachter, an analyst at Wedbush Securities who covers Netflix.

Shares of Netflix were little-changed on Tuesday at $367.73 in midday trading. The stock has nearly quadrupled this year.


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