Netflix price for pay-per-user scheme
Popular video streaming service Netflix have begun testing a new price scheme based on how many users are connected to one account at any given time. This means that two users on the same account would pay more for streaming to a TV and a tablet than only one user using a single device, the test comes as Amazon Prime’s video service claims huge increases in users in December 2013 alone. Netflix has a number of self-funded shows and has made headlines in the past year for purchasing the rights to stream several high profile shows within days of the initial air date.
Amazon Prime is one of the biggest competitors for Netflix in the UK, so it’s no surprise that Netflix are looking at alternative prices for users to try and entice them away from the world’s largest online retailer. Video services offered by Amazon are secondary to the Prime service as the main attractions are benefits to the shopping side of the site; price reductions, cheaper delivery options, and free next day delivery on some items. The Netflix price test would change how much subscribers pay, currently costing just under £5 and they have the ability to stream content to two devices, if these changes are made to the Netflix price users would be paying an extra £1 to use three devices. In comparison Prime users pay £49 per year for access to the video library, audio book/e-book selection, and additional shopping benefits.
One concern that many users may have is the effectiveness of streaming services like Netflix and Amazon Prime in more rural areas of the north east, including areas in and around Consett. The north east as a whole has, on average, the slowest internet connections in the UK alongside regions of Wales and Scotland – in comparison London has the fastest average speeds. A lot of households in the Consett area could struggle to stream to more than one device without buffering or bandwidth issues, so a scheme like this probably won’t benefit anyone outside of the capital or those lucky enough to be in a high-speed area.