Thursday, January 23, 2014

Netflix's 2013 ends with 44 million subscribers, will keep experimenting with pricing

 

 

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Netflix's 2013 ends with 44 million subscribers, will keep experimenting with pricing
1/22/2014 9:09:00 PM

Netflix had a big comeback year in 2013 with award-winning original content, new features and millions of new customers. Now the company's fourth quarter report reveals it wrapped up last year with over 44 million customers worldwide. Interestingly, an entire section of the letter to investors is related to the recent appeals court ruling that struck down key parts of net neutrality. Reed Hastings doesn't appear overly worried however, and says the most likely case is that ISPs "will avoid this consumer unfriendly path of discrimination," like extra fees or tiers for access to streaming video. In the US, Netflix now counts over 33 million customers, and it predicts that by the end of the current quarter, it will be over 35 million.

Another segment deals with its recent pricing tests, which Netflix says it hopes to boil down to "three simple options to fit everyone's taste." That said, it's not ruling out pricing changes for new members, but promises (in bold type) "existing members would get generous grandfathering of their existing plans and prices." We'll see if bold type is enough to quell the customer unrest that happened the last time Netflix shifted around its plans.

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