Digital movie service customers may be able to opt for a less expensive subscription package if Netflix likes what it sees in its current evaluation of the product USA Today reported Tuesday.
Netflix would also reportedly aim to get ahead of competitor Amazon in the market in 2014 USA Today reported.
"Whether we offer any of these tiers generally will depend on the results of the tests," Jonathan Friedland, a spokesman for Netflix told USA Today.
Consumers can get the Netflix video streaming plan for $6.99 a month USA Today. Viewing is available on a single screen. The $7.99 a month basic streaming service option allows content viewing on two screens at once.
Three-screen viewing at once is also available with a $9.99 subscription. A four-screen viewing plan is also available for $11.99.
Netflix is looking to see the number of televisions individuals who have never used Netflix before, utilize for the technology USA Today reported.
The company is also testing a $9.99 subscription for viewing Netflix on as many as three screens simultaneously and it has had an $11.99 four-stream plan available for a while.
"They have the data to show them how many households stream on a single device, and they are probably weighing the lost revenue from those households converting to a lower priced plan against the revenue gains from charging for multiple devices," Michael Pachter an analyst at Wedbush securities told USA Today."Should it happen in the next year, we think that Netflix growth will stall, and we would expect Netflix's share price to tumble."
USA Today did not get a response from Amazon.
"The new plan likely has at least two goals: 1. Attract the more value conscious consumer. 2. To more effectively compete with Amazon Prime," Arvind Bhatia, said in a memo to investors Tuesday USA Today reported. "While the lower price could attract new subscribers, it could also somewhat cannibalize current subscribers given how easy it is to cancel and re-signup for the service."
