Netflix is testing cheaper mobile-only subscription deal
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Loading... - Jen Murphy
- 15 Nov 2021
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Netflix is aware that for some users, especially in some countries, its pricing is a little too high. That led it to consider dropping subscription fees slightly in certain places.
However the test also extended to offering a mobile-only option with a massively reduced price. TechCrunch reports that users in Malaysia were offered a mobile tier for around $4 US per month, roughly half what the "basic" plan costs.
In some ways this model makes sense. Mobile phones are usually well served with video that is more highly compressed and has a lower resolution. Users watching TV and Movies on their phone aren't the high-end surround sound lovers of home cinema.
Netflix also offers multiple streams to users on most packages, but presumably this is a fixed price for a single stream. That cuts out the bothersome account sharing that Netflix tolerates, but would probably rather see the back of.
Local rivals in many countries - especially those with generally lower wages - are easily able to undercut Netflix' traditionally US-centric pricing structure. That makes the popular streaming company look expensive compared to the competition.
In countries like the UK and US it's Netflix which is undercutting everyone else - making itself look like a far more attractive deal than, say, a basic Sky package which costs more than twice as much.
Netflix is also investing in content from Asia. A big investment in shows from India was announced recently and the company is pushing its in-house productions all over the world, helping it break free of Hollywood (or Bollywood) and forge its own path.
It's unclear if Netflix will bring a mobile-only subscription to other parts of the world. It would make sense, given the company's need to keep bringing in new subscribers to satisfy investors.
