Monday, April 25, 2011

Will Netflix Add Family Plans?

Netflix will introduce additional streaming plans later this year that will offer the ability to stream to multiple devices simultaneously, GigaOm suggests. The offering could look like a mobile phone family plan, with an option to add additional accounts at a lower price point.

“One option would be to allow an account to add additional concurrent streams (using the analogy of our DVD business, it would be like choosing a higher-priced plan that allows a subscriber to have more DVDs at home)," Netflix states. "Or it could be that there is a price point that would encourage multiple accounts in one household."

The change potentially is important, as it is a step in the direction of "service for people," rather than "service to a location." That also was the difference between mobile and fixed-line adoption. People bought one phone line per home, but each person has a mobile device.

Netflix might be looking a shift towards "personal" consumption rather than "household" consumption. The "personal consumption" market is much bigger than the "household subscription" market.

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