Netflix Carves Out a New $6.99 One-Stream Niche
Target Market Is New Customers Who Get Lower Rate for Standard-Definition-Only
Last Monday, Netflix reps revealed a recent maneuver with real potential for market outreach expansion to budget-minded prospects. This latest move is launching a low-cost, single-stream pricing plan for new Select subscribers that features content delivery solely in standard-def format.
The novel test monthly plan tier rate is $6.99 and allows single-screen sequential subscriber video screening. That is just $1 below the $7.99/month Standard Service that includes high-def library access and simultaneous double-streaming. The next level is a $11.99/month family-friendly tier that enables four-screen simultaneous streaming in both SD and HD.
Of date, Netflix has made no announcement about planned method of distribution for a 4K option scheduled to debut in early 2014. It has been revealed, however, that the 4K monthly plan will encompass second-season 4K streaming for original Netflix series House of Cards.
Netflix did offer Multichannel News its new $6.99 monthly plan and a 30-day free trial during attempted signup. It was also clearly disclosed that the new single-stream monthly plan is available to a limited number of new select subscribers and Netflix has made no commitment of ongoing availability to either new or current users.
A Netflix spokesman recently stated that Netflix constantly tests new ideas, among the latest of which is its $6.99 single-stream monthly plan. He went on to advise that it will not be within reach of everyone and may never become a standing offer.
To date, Netflix has declined to further expound about its strategic marketing plans, despite many covert and blatant invitations. Silence notwithstanding, it is well-known that Netflix's new monthly plan tier makes it service offerings more desirable to a market segment that previously shunned its Standard Plan.
A total of 1.3 million new Netflix domestic stream subscriptions during 2013 Q3 represents 11% more than one-year prior.