Netflix is testing lower price points on its monthly subscription plans, chief finance officer Barry McCarthy told analysts and investors at the Lehman Brothers Small Cap Conference Wednesday.
“The reason we’re testing it is we think the market is price elastic,” McCarthy said.
The company also believes lower prices could drive more subscribers its way, forcing some moderately successful video stores to close and push even more renters online. As more people go online, the company expects to have to spend less money on marketing, McCarthy said.
Via Hacking Netflix
Props to Jennifer Netherby at VideoBusiness.com for covering the Netflix stories. She interviewed me once. Nice lady.