Netflix has hinted that it may introduce pricing tiers for users as it announces a strong financial year and promising financial prospects for 2014.
Currently, in the UK, there is only one pricing option for Netflix members, at £5.99 a month.
However, in a shareholder letter issued this week, Netflix said: “since late last year, we have also been testing 1-stream and 3-stream varients, as well as SD/HD variations, at various price points. Eventually, we hope to be able to offer new members a selection of these simple options to fit everyone’s taste.”
The news comes alongside Netflix’s 2013 summary results and Q1 2014 forecast, in which the company predicts to end the first quarter of the New Year with 48 million members as it plans a strong European expansion.
Netflix has said that if it does make pricing changes for new members, existing members will get “generous grandfathering” of their existing plans and prices, meaning that there will be no near-term revenue increase from moving to the potential broader set of options.
“We are in no rush to implement such new member plans and are still researching the best way to proceed,” Netflix added.
After promoting 4K technology at CES this year – announcing that House of Cards series two and all five seasons of Breaking Bad will be available in ultra-high definition streams – Netflix said that the short-term impact of 4K is mainly on “consumer perception of Netflix as a leader in Internet TV.”
In the final quarter of 2013, Netflix generated total revenue of $1.2 billion, with the majority coming from US subscriptions.
