Netflix is Testing a New ‘Ultra’ Subscription Tier
Netflix is reportedly testing out a new subscription tier called “Ultra”, which will become the priciest monthly option for the streaming giant. The plan will price higher than the company’s current $13.99 “Premium” option, according to a report from TuttoAndroid, who first spotted the new plan.
The Ultra plan will cost $16.99 in the United States and will offer customers the ability to have four simultaneous 4K streams all at once. This, however, is already offered on the current, and cheaper, premium plan. Based on the report, Netflix is testing several versions of the plan that could use HDR video streaming to make it stand out from other versions. As more advanced televisions capable of displaying HDR content hit the market, Netflix is hoping to keep up with the increasing demand by offering streamable content at these ultra-high definitions.
The company currently has three subscription plans: $7.99 Basic, $10.99 Standard, and $13.99 Premium. Basic allows for users to stream content on one screen at a time. Standard allows for viewing on two screens, and Premium allows for four screen streaming. Smita Saran, a Netflix spokeswoman. Said in an email, “We continuously test new things at Netflix and these tests typically vary in length of time. In this case, we are testing slightly different price points and features to better understand how consumers value Netflix.”
So far, these plans are only being tested in Europe, but, according to how well these changes are received, could become more widespread among Netflix customers. Saran said, “Not everyone will see this test and we may not ever offer the specific price points or features included in this test.”
Wall Street analysts have said that Netflix has enough pull for testing out these higher prices. During the fourth quarter of 2017, Netflix posted their highest customer growth yet, adding 8.3 million new subscribers. This is also the last time that the company raised their prices without much drawback, so time will tell whether these potential price hikes will be well received.