Netflix is reportedly testing a cut-price mobile-only subscription offering in Malaysia in an apparent bid to open up the service to more users in this market. The video-streaming giant said the same yesterday but did not give out an additional details on which other markets will see a test run of the same.
Speaking on the company's third quarter earnings call last month, Netflix's chief product officer, Greg Peters, said that Netflix may look to make faster inroads into emerging markets like India by cutting prices.
Most know this, but the streaming network offers three pricing tiers with the cheapest tier at $7.99 per month, although it varies by country.
Of course, as Netflix users know, the content that you see in one part of the world isn't always the same as what you'll see in other parts of the planet. Recently, it announced 17 new shows from five Asian countries, nine out of it alone for India.
"Someday, the growth will be slower and we should be cash flow positive but while we are in this hypergrowth around the world and that does consume cash and our investors are comfortable with that", he added.
It's not certain whether the plan will be introduced in Australia, or if it'll even become a mainstay in its subscription options, but for those who do absolutely everything on their phones, having a cheaper option is certainly a win.
Increasing the cost to $10.99 gets the Standard plan, allowing two simultaneous streams in HD.
Beyond experimental price cuts, Netflix is also interested in raising prices in other markets.
Rivals including fast-growing Hotstar in India, iFlix - which is backed by Sky and covers 28 countries - HOOQ and Viu are priced from $3 upwards per month. Hence, the company is now trying to better the experience, relying on a significant amount of people to start watching Netflix through the app.
Netflix CEO Reed Hastings told Bloomberg last week that the company would test power-priced subscriptions to help boost sales.