It reversed that decision - but not the price hike - and Netflix lost nearly 1 million customers. The company initially spun off the DVD-by-mail business into a separate company called "Quikster," saying customers could no longer buy DVD and streaming service from Netflix. It doesn't want a repeat of its 2011 Quikster debacle, in which the company suddenly hiked prices 60% for people who were both streaming and DVD-by-mail subscribers. Netflix is treading lightly for a good reason. Netflix said it was doing it "to reinforce brand trust" and to "learn as we go."īut on a conference call with investors, CEO Reed Hastings also admitted that the company doesn't "particularly need the revenue in the short term, so it's fine to just spread it out." Netflix has said that the extra revenue it hopes to gain from increasing prices will go towards licensing and creating better content for 2017. Phasing out its grandfathered plans this way is an impressive show of customer loyalty. Related: Netflix up to 81.5 million subscribers but stock drops Netflix also has a higher-priced $12-a-month plan, which broadcasts in ultra-high-definition and lets customers play videos on four screens simultaneously.Ĭustomers will have to choose one of the options - or they will be able to drop their subscription. In addition to the $10 plan, Netflix ( NFLX) will offer a lower-priced $8-per-month option, which presents videos in standard definition and only allows one person to use the account at a time. Netflix also said customers should receive an email notification explaining the company's new new plans and options before their price increases.
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