When we normally see a headline about Netflix and its pricing it is generally about a hike in monthly subscription fees. However, that doesn’t seem to be the case with this latest report as the online multimedia streaming company is thinking about testing a cheaper plan for its customers. If true, Netflix could end up offering a streaming subscription plan that would end up costing the customer $4 per month. Ah, but as you would expect you know there’s a catch here. This cheaper monthly subscription plan would only be usable for those who stream on a mobile device.
What’s also unclear about this less expensive streaming plan is where the company plans to offer it. The report originated last week when the CEO, Reed Hastings, told Bloomberg that the company had plans to test lower-priced packages as it tries to capture more markets in Asia. While Netflix continues to add millions of new subscriptions worldwide (in Q3 2018 the company added 7 million), there are a number of competitors that are raising up in various markets around the world.
Testing in Malaysia
These rivals are popping up in various markets where customers are more price sensitive than in other areas of the world. Some of these new companies include Hotstar, iFlix, HOOQ, and Viu. Each of these companies offers a multimedia streaming service in various markets and have plans that are less expensive than what Netflix currently offers. So we’re told that Malaysia is the first country the company is testing new mobile-only tiers which are ranging from RM17 (~$4) to RM33 (~$7.90) per month.
Not only that but similar to how smartphone makers are targeting India for growing their user base, Netflix is as well. The company recently revealed they are working on 8 new Netflix Original movies along with 1 new TV series for India. We’re even seeing Netflix working on bypassing Apple’s 30% share of the iOS in-app purchase subscription by using a web-based payment system. All of these changes are just in testing right now though, so we could see them become permanent offerings from Netflix or they could go away if they don’t increase profits or improve the overall user experience.
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Via: TechCrunch Source: Bloomberg
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