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Netflix is planning to overhaul its pricing structure

Netflix is gearing up to overhaul it pricing structure. According to a shareholder letter and interviews with Gigaom, the streaming site will introduce a new three-tiered system for its customers. They added that there would be “generous grandfathering of their existing plans and prices,” and that they are in “no rush to implement such new member plans and (are) still researching the best way to proceed”.

Netflix is getting ready for a new pricing structure, according to the company’s Q4 letter to shareholders (PDF) released Wednesday. In it, CEO Reed Hastings and CFO David Wells write: “Last April we introduced a 4-concurrent stream $11.99 option to begin our evaluation of plan tiering. Since late last year, we have also been testing 1-stream and 3-stream variants, as well as SD/HD variations, at various price points. Eventually, we hope to be able to offer new members a selection of three simple options to fit everyone’s taste.”

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