Netflix Considers More Affordable Price Plans
Netflix Inc. has announced that it is thinking about testing a lower-priced version of its film and television streaming service in some markets to boost sales.
In an interview the CEO of Netflix, Reed Hastings said that the company hasn’t yet committed to lowering prices anywhere, but is definitely interested in experimenting. He didn’t clarify when or where the test would be conducted.
This is the first time that Netflix has ever suggested that it might lower some of its prices. The streaming giant has always maintained or raised its prices in major markets whenever it added new content or invested in local shows to attract subscribers.
Netflix currently offers subscriptions at three different price levels and doesn’t plan to lower the price of its cheapest tier. It is instead, formulating a fourth tier that will have different features and cost less.
Netflix first gained traction in the U.S. by offering a variety of TV shows and movies at a cost that was lower than pay-TV, encouraging millions of people to cancel their satellite subscriptions. Now, the world’s largest streaming service is seeking growth in countries where income is significantly lower.
Prices vary by territory, and the cheapest U.S. plan is approximately $7.99.
Netflix is the world’s largest streaming service with more than 130 million subscribers and is now looking to Asia as new fertile territory for new customers after entering the region three years ago. The company announced at an event in Singapore that it would be adding 17 new shows from five Asian countries.
The service is developing over 100 films and TV projects across Korea, India, Thailand, Japan and Taiwan and has local headquarters in Singapore.
Still, growth has been very slow in the region. According to estimates by Media Partners Asia, Netflix has failed to gain even 2million subscribers in any one of those countries. YouTube continues to dominate in those parts of the world as the most popular video service.
The Executive Director at Media Partners Asia, Vivek Couto says that Netflix will absolutely have to lower its price if it ever hopes to reach 100 million subscribers in India.
Hastings disagreed and said that he wasn’t worried about YouTube and was confident that 100 million subscriptions were highly possible in India among those who spoke some English and earned enough money to afford Netflix's service.
Credit: This article originated from mybroadband.co.za and can be found there.