South Africa: Netflix Tests Cheaper Mobile-Only Pricing Plan, Attempts To Undercut Showmax's Pricing
Netflix announced it is now testing a mobile-only pricing plan that will cost its subscribers in South Africa only 39 Rands (US$2.50). Industry watchers find this an interesting move and could be an attempt to undercut Multichoice Showmax mobile-only price which is currently fixed at 49 Rands (US$3.00).
Until the possible introduction of the mobile-only pricing plan, Netflix subscribers were only able to access its content by paying a minimum of 99 Rands (US$6.00) monthly subscription fee. With the mobile-only testing, Netflix believes that "many more users it could potentially sign up to its offering markets where the penetration of mobile devices are high, but data costs are still expensive and the availability of broadband internet is limited". Netflix says its month mobile-only plan limits the video stream to 480p and one viewing stream on a mobile device or tablet.
Speaking with South Africa's TV With Thinus, Netflix said: "that in keeping this mobile audience and people's device usage in mind, it is experimenting with new plans across the African continent - excluding Egypt where it was already tested - to give potential subscribers more choice, and that if it seems that users are not valuing these new plans, it would not be rolling it out more widely."
It is worth noting that because the mobile-only plans are still in the test mode, not all subscribers who want the service can access it at the moment.