Netflix CEO Reed Hastings sent out a letter to shareholders on Wednesday, revealing the streaming service is looking to introduce three set pricing tiers for new customers in the coming months. Currently, Netflix offers a number of different options, including an $11.99 family plan, one-stream and three-stream plans, and SD/HD variations. Eventually, Hastings said, Netflix plans to move onto three simple options “to fit everyone’s taste.”
Once the plans do roll out, Hastings said, existing members will get “generous grandfathering of their existing plans and prices,” though he cautioned that the company doesn’t yet have a set time of when to introduce them. No price structure has been shared, so it’s unclear how the landscape of Netflix will change once the three options are introduced. Given the plans that are available now, Netflix will likely consolidate them down, making it easier for new customers to understand.
Also in the letter, Hastings shared some Q4 financial information, which was better than expected; the service added 2.33 million domestic subscribers during the quarter, up from 2.05 million during the same time period in the year-ago quarter. It also added 1.74 million international subscribers, though that growth is down from the 1.81 million in added a year earlier. Overall, Netflix managed to generate $1.175 billion in revenue, with a net income of $48 million. Last year, the service generated $945 million in revenue, and a net income of $8 million.
Netflix had a big 2013 regardless of the revenue gains and growing subscriber base. Not only did it release a ton of original content—with more to come—its darling political thriller, House of Cards, was nominated for four Golden Globes, including Best TV Series, Drama, and Best Actor in a TV Series, Drama. Netflix recently announced it has plans to offer House of Cards in 4K at no additional cost to current subscribers.