Netflix has introduced a new plan that cost $6.99 per month. However, there are a couple of drawbacks if customers opt for this plan.
First, the $6.99 plan only supports standard definition, which means that customers will not be able to watch a movie or TV show in HD.
Second, the plan will be disadvantageous for customers who have more than one TV as the user can only stream media content on one device at a time. The $7.99 monthly plan allows users to stream content simultaneously on multiple devices.
The new plan is aimed at bringing new customers within Netflix's fold. On Monday, October 21, the on-demand online media content provider announced that in Q3 2013 its user base had crossed 40 million when compared to 30 million in the same quarter of 2012. Netflix offers online service in 41 countries globally and announced that its subscriber base had increased in all regions. The company also unveiled its plans to launch its online services in more countries in 2014.
Netflix said the cheaper $6.99 basic plan will be offered to new and select users only and the option will show up after a customer signs up for a free one-month trial streaming.
The new $6.99 plan is expected to draw away customers from Netflix rival HuluPlus, which charges $7.99 per month for similar service.
