Netflix how to download netflix movies and tv shows

Netflix Is Testing a Lower-Cost Streaming Plan

Sterne Agee analyts Arvind Bhatia and Brett Strauser analyze Netflix, Inc. (NASDAQ:NFLX)’s new subscription plan. Netflix is testing a $6.99 plan for new subscribers. The plan could attract the more value-conscious consumers but could also somewhat cannibalize existing subscribers.

Netflix Is Testing a Lower-Cost Streaming Plan

Netflix is testing a $6.99/month streaming plan

Netflix, Inc. (NASDAQ:NFLX) is testing a $6.99/month streaming plan. The plan is available to NEW subscribers only. This is lower than the current $7.99/month plan. However, the $6.99 plan allows streaming to only one screen at a time versus two screens at a time allowed under the $7.99 plan.

The new plan likely has at least two goals:

1. Attract the more value conscious consumer.
2. To more effectively compete with Amazon Prime ($80 a year, which works out to $6.67 per month). (, Inc. (NASDAQ:AMZN)- $393.37 – Not Rated).

While the lower price could attract new subscribers, it could also somewhat cannibalize current subscribers given how easy it is to cancel and re-signup for the service.

Also, one has to wonder what impact this would have on Netflix, Inc. (NASDAQ:NFLX)’ ability to raise prices in the future, which is an important part of the long-term bull thesis on the stock and is needed to offset rising content costs.


Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Are you an intelligent investor?

ValueWalkPremium is a website and newsletter for smart investors like yourself. We focus on the latest hedge fund industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers