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As shares of Netflix (NASDAQ: NFLX ) have climbed over the past two years, analysts and industry pundits have wondered repeatedly when the streaming video company would hit a glass ceiling: No way could Netflix shares pass $200. No way can the company’s subscriber base reach 20 million. No way can the company continue to sign new content partners. The company has met and surpassed all of these hurdles, but even now they’re facing new challenges . How will Netflix fend off new competitors like Amazon (NASDAQ: AMZN ) and keep growing its membership? Netflix offered a preview of the future strategy earlier this week, announcing it would begin offering “family plan” subscription packages later this year that would allow multiple streaming from one Netflix account, which would, for example, let kids watch a movie on a computer while parents watch one on TV. Current Netflix subscriptions, including the $8-a-month streaming-only option that has fueled the company’s success in the past six months, allow audiences to stream only one movie or television show at a time, regardless of what device (television, smartphone, etc.) is being used. The plan should bring in new customers as well as begin culling more revenue from existing subscribers. Netflix will likely discuss the plans during its earnings call next week, but investors may also hear about other new pay models, as this marks a great time for the company to diversify revenue streams.   It would also make sense for Netflix to begin offering premium memberships that give access to a broader range of movies and television. As it becomes more difficult for Netflix to convince content partners to continue giving audiences unlimited access, premium Netflix memberships would be an ideal way to satisfy both content providers and audiences. The groundwork for this pricing model is also ingrained in the audience already — it would be just one more step on Netflix’s way to becoming a true cable competitor. It’s also possible that Netflix will introduce a lower-cost membership to its streaming service, albeit one that is advertising supported. Competitor Hulu hasn’t found the same robust audience as Netflix, but it has proven that a premium subscription streaming service can also host ads and be successful (Hulu Plus is on track to hit a million subscribers within its first eight months of business.)   As of this writing, Anthony John Agnello did not own a position in any of the stocks named here. Follow him on Twitter at  @ajohnagnello  and  become a fan of  InvestorPlace on Facebook.

What's in this article?

• netflix family plan
• netflix growth plan strategy

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