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Netflix Testing 'Ultra' Tier With Higher Price, May Hurt Premium Users

Netflix Testing 'Ultra' Tier With Higher Price, May Hurt Premium Users

By Sumit Chakraborty | Updated: 4 July 2018 13:25 IST

Highlights

Netflix may introduce a new tier of service at the higher price point
Ultra rumoured to be priced at EUR 16.99 (roughly Rs. 1,400)
Company says test does not indicate plans for a full rollout

Netflix is reportedly planning to introduce a new tier of service called 'Ultra'. Currently, the company offers three different tiers - Basic, Standard, and Premium - but that may change soon as it appears to be planning its most expensive streaming tier until now. Additionally, Netflix may introduce some changes to the current plans that may not come as good news to many subscribers, especially the Premium users. As per latest reports, the key highlights of the Ultra plan is that it supports HDR video and HD audio, and four screens can use the subscription simultaneously. Netflix has confirmed it is testing new price points and features.

As per a report in Tutto Android, Netflix is planning to release the new Ultra tier priced at EUR 16.99 (roughly Rs. 1,400). This report is based on promotional material that some Italian consumers had received from the video streaming platform. According to the promotional material shared for this new package, the new tier would essentially provide the same benefits as the current Premium tier. However, with the Ultra plan, Netflix appears to halve the number of concurrent streams from four to two for Premium subscribers. This essentially means that Netflix Premium users will have to upgrade to the more expensive Ultra tier to maintain the same level of service. Further, the Ultra tier will now offer the four streams but at a higher price. Notably, the Standard tier would also get to one stream from two.

Photo Credit: Tutto Android

Meanwhile, in a statement to CNET, Netflix has said that it is "continuously" testing new things and that a test does not necessarily indicate plans for a full rollout. A company spokesperson was quoted as saying, "In this case, we are testing slightly different price points and features to better understand how consumers value Netflix." The current rate for the Basic plan in Italy is EUR 7.99, with EUR 10.99 and EUR 13.99 for Standard and Premium.

Notably, a report in CordCutting claims that the changes applied in a few other European countries as well, including Germany, where both the EUR 16.99 and EUR 19.99 prices are shown for the Ultra plan, depending on the browser used. This is not the first time Netflix has increased prices for its subscribers. Last year in October, the company raised the prices of its Standard and Premium plans.

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