Netflix Could Actually Become Cheaper for Some Users – but More Expensive for Others

Netflix is testing a new pricing model that could make it cheaper for some people—but more expensive for others.

The popular subscription streaming service wants to charge only $7 for single-user accounts (down one dollar from current pricing) but charge up to $12 for accounts with up to four users.

The testing is currently being conducted on a select few users but, if successful, could expand to customers across North America this year.

Analysts seem to approve of the idea as a non-offensive way to get a little more money from customers and help combat privacy. However, some investors question why the base price would go down by a dollar, calling it an unnecessary price drop that is too small to draw in enough new customers to outweight the loss in profits.

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Netflix has more than 40 million subscribers worldwide and the company’s share price nearly quadrupled in 2013. Roughly 12% of Canadians use Netflix, making Canada one of Netflix’s most-penetrated countries.