To widen its appeal and tap emerging markets, video streaming giant Netflix has been piloting lower-priced mobile-only subscription services.
The firm has first rolled out the service in Malaysia at half the price of its Basic package ($8) in the country. The video streaming giant has confirmed that it is also running trials in a few more Asian countries. It plans to offer mobile-only subscription at $2-5 every month in the emerging markets.
This is a first of its kind of development for Netflix, which has maintained prices and never lowered it in all its major markets.
Market analysts have earlier argued about its loss due to its rigid pricing. Netflix has also realised that to gain next set of users and boost sales, it has to experiment with its prices. It has 79 million of its subscribers out of 137 million coming from international markets, according to a Techcrunch report.
The company finds the Asian market, especially India, as an exciting opportunity to tap into the next set of users. It has also been doubling down content in the region. Recently, it announced 17 new shows from five Asian countries, nine out of it alone for India.
The company CEO Reed Hastings in a recent interview said that he sees India as a huge market and plans to gain around 100 million customers from the country in the coming years.
India is a price sensitive market. Due to its price being on a higher side, it misses a large chunk of new users. With the lower-priced mobile-only subscription, it will aim to reach out to those new users in India.
Entrackr queries to Netflix about its detail India plan did not elicit any response.
Meanwhile, Netflix had reported a profit of Rs 20.2 lakhs in the country, as per registered financials record in October. Its profit for the seven month period stood at Rs 58 crore.
Netflix has 5-7 lakh of subscribers in India. Netflix monthly subscription plans start at Rs 500, which more than double of what its competitors like Amazon and Hotstar offer, in the country.
Amazon and Hotstar have 13 million and 5 million users respectively.