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.
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.