Netflix to introduce three pricing tiers in the US

Video streaming leader Netflix is planning to change its pricing system in the US from a single flat rate to a three-tier system to better suit customers’ demands.

The decision was announced in CEO Reed Hastings’ letter to shareholders after a better-than-expected performance in the last quarter of 2013, when the company managed to add 2.33 million domestic subscribers as well as 1.74 million international subscribers.

In his letter, Mr Hastings said: “Eventually, we hope to be able to offer new members a selection of three simple options to fit everyone’s taste.”

The company is also planning to offer 4K streaming in conjunction with the launch of the second season of House of Cards at no additional cost for all members.

Existing members were promised ‘generous grandfathering of their existing plans and prices’ and won’t be forced to switch to the new plan.

Mr Hastings did not mention any plans to introduce a new system in the UK, where the current price is fixed at £4.99 per month.

He also mentioned plans for further expansion in other European countries, with France and Germany being the most likely candidates.

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