Netflix tests cheaper, mobile-only subscription
Netflix is experimenting with a halfprice, mobile-only subscription to its popular streaming service. The catch? For now you have to live someplace such as Malaysia.
The Los Gatos, California-headquartered company confirmed it is testing a mobile-only subscription in some countries including Malaysia. Malaysian news site The Star Online first reported the test, which TechCrunch subsequently wrote up.
The mobile-only subscription is priced at about $4, half that of the basic service Netflix offers in Malaysia. Subscribers to the plan can watch on one handheld device such as a smartphone or tablet. Video is delivered in standard definition, not high-def.
“We are always looking for ways to make Netflix more enjoyable and more accessible to people all over the world,” Netflix said in a statement to USA TODAY.
“In this case, we are testing to understand consumer interest in a mobile-only plan in some countries. Generally, we try out lots of new ideas at any given time, and they can vary in how long they last and who sees them. We may not ever roll out the features or elements included in a test.”
Last week, Netflix CEO Reed Hastings told Bloomberg the net TV provider planned to test a lower-priced subscription to boost sales in international markets including Asia. Netflix currently has 137.1 million subscribers globally,
57 percent of them outside the U.S. Mobile subscriptions eventually could drive huge growth for the company. Hastings noted the massive installed base of smartphones in India last month while discussing Netflix’s third-quarter performance with analysts.
For instance, India has more than
300 million households but almost twice as many mobile phone subscriptions. “So there’s a huge market, and people in India, like around the world, love watching television,” Hastings said. “Now we’ll take it a million at a time and figure out how to expand the market as we grow.”
Netflix has tested different subscriber offerings in different markets. This year, the company tested a higherpriced premium “Ultra” subscription in Europe offering 4K Ultra HD video with High Dynamic Range (HDR) quality and the ability to watch on four screens at the same time for 17 euros, or about $20.