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Netflix set to offer new $12 plan for streaming on 4 devices at Once

Netflix Streaming Family Plans
Netflix CEO, Read Hastings, announced in a quarterly shareholders letter that the company would be offering up a new streaming price option. The current price point of $7.99 a month for unlimited streaming to two device simultaneously will remain in tact, but now there will be a new $11.99 price option available to choose from. The additional option has been put into place for people who regularly stream on more than two devices at the same time.

This new price plan offer has been put in place to accommodate a variety of different users. With the $7.99 streaming only option you are limited to 2 devices streaming at one time. In a single family home that lives on streaming services, like myself, this can sometimes become a nightmare. We solely run Netflix in two bedrooms via a Wii and a Chromebook and in the living room via Google TV. If everyone is home and doing their own thing, we sometimes have to kick someone off. It is also for those who share their account with friends or family members. Which you aren’t supposed to do, but we all know it happens. The new $11.99 plan offers all the same content, it just allows 4 devices to stream simultaneously without hitting the current 2 device restriction.

Interestingly enough Michael Pachter of Wedbush thinks the Hastings needs to push harder to crack down on account sharing and pricing. He thinks Netflix needs to limit the number of connected devices to an account, charge an additional fee for “Kids Programming”  or have users pay an additional $3 fee for connecting more devices. While his thinking makes sense, I don’t think it would bode well for the company. Especially after the huge fiasco that took place a few years back. With Netflix available to PC’s, Laptops, Chromebook, Android devices, Tablets, Wii’s Xbox and a plethora of other connected devices, it would be unfair for users to be charged more because they own multiple devices. I have it on 9 devices in my house, but they are never streaming at the same time.

As for the new plan offering though, Netflix is only expecting that around 1% of its 36 million current subscribers. Which translates to about 360,000 accounts. I could technically fit into that number, but I will continue to keep people from tripling up in my house. Do you fall into this new plan and will you be bumping your service up the extra $4 when it becomes available?

Source: Netflix, Bloomberg