Here’s how Netflix is thinking of changing subscription prices

For the past year, Netflix has been experimenting with different pricing schemes. Back in December, Netflix began offering a $6.99 plan that was standard-definition and only allowed streaming to one screen. This was $1 less than the more common $7.99 plan, which streams in high-definition to two screens. In addition, Netflix has had a family plan since last April at $11.99, which allows for streaming up to four screens. Now, Netflix hopes to make three-tiered pricing official, according to its Q4 letter to shareholders (PDF). Netflix CEO Reed Hastings and CFO David Wells write that it has “been testing 1-stream and 3-stream variants, as well as SD/HD variations, at various price points. Eventually, we hope to be able to offer

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