Netflix Is Running Small Payment Plan Tests

Cadrene Heslop

Netflix lost over 200,000 subscribers and separated itself from 300 employees. (source) Since then, the company has aimed to charge account holders more. One plan is now under a test run in Latin American countries. (source)

Users in the five participating countries will pay $2.99 per month. And can add a home to their account at an extra cost. The streaming service reports that password-sharing enforcement has not gone well worldwide. (source). The poor reaction caused Netflix to expect a loss of 2 million subscribers in quarter two of this year. (source)

The team hopes to solve part of the password-sharing problem with this Latin America test run. The study will raise service prices if the user accesses their account from more than one home. So, the base fee is $2.99. But the person pays extra to access their profile in a different location. (source)
Photo by charlesdeluvio on Unsplash

The advertisement tiered service

The company also has another payment structuring plan underway. Netflix is working with Microsoft to develop an ad-supported service. The aim is to feature advertising but make it less intrusive than cable television. (source)

Here are Netflix's comments on the ad-tiered service:

"It's very early days and we have much to work through. But our long-term goal is clear." More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We're excited to work with Microsoft as we bring this new service to life."  

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*Disclaimer: This article is for informational purposes only. This article got written using corporate postings and accredited media reports.*

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