Netflix has introduced a new tier to its pricing option in an effort to gain new subscribers. AdWeek noticed that the video-on-demand service now lets users pay $1 less for the service, but with two restrictions: viewing is limited to standard definition and content can be viewed on only one screen at a time.

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One of the reasons for this change could be because Netflix grows tired of people sharing their passwords with their friends and family, resulting in decreased revenue (and contrary to CEO Reed Hasting’s denial that he’s worried about this behavior). So to find ways to convert non-paying users of its service, the company felt that reducing the annual cost down by $12 would be enticing enough.

It’s important to note this price is only for new members. If you already have a Netflix account, you could delete your account and sign right back up. However, keep in mind what you’d be giving up just to save that money.

Update: Netflix has confirmed to TechCrunch that the $6.99 plan is a test, which may not be released to all.

➤ Netflix Knocks a Dollar Off Its SD Streaming Service For New Users (AdWeek)

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