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Netflix trials new ‘Ultra’ subscription plan in Europe

Published: 17:23 06 Jul 2018 AEST

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Analysts have said Netflix has some wriggle room if it wants to bring in more expensive plans

Netflix Inc (NASDAQ:NFLX) is set to trial a new type of subscription plan that could see users forking out almost four times as much for the streaming service as they do now.

The online film and television giant, which has more than 125mln subscribers around the world, is testing a premium ‘Ultra’ package in Europe.

For €17 (£15 or US$20), subscribers get 4K Ultra HD video with HDR quality, as well as the ability to watch on four screens at the same time.

READ: Netflix briefly overtakes Disney as world's most valuable media company

The cheapest plan in the UK is currently £5.99 a month, while the most expensive is still a relatively modest £9.99.

In a statement given to USA TODAY, the California-based firm said: "We continuously test new things at Netflix and these tests typically vary in length of time.

“In this case, we are testing slightly different price points and features to better understand how consumers value Netflix.”

It added: “Not everyone will see this test and we may not ever offer the specific price points or features included in this test.”

Analysts have often said that Netflix has some wriggle room with its prices, shown by the fact it recorded its largest ever growth spurt  - 8.3mln new subscribers - at the end of 2017 despite raising the cost of its most popular plan (the standard plan) slightly in October.

It has gone too far in the past though. Back in 2011 Netflix lost 800,000 subscribers in the US when it hiked the prices for its streaming and DVD rental plan by more than 50%.

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