Netflix testing mobile-only subscription plan at half the price

“Black
Mirror”
David
Dettmann/Netflix

• Netflix is testing a mobile-only, half-priced subscription
  plan in countries like Malaysia.
• Netflix said in a statement to USA Today, “we are
  testing to understand consumer interest in a mobile-only plan in
  some countries.”
• Netflix CEO Reed Hastings told Bloomberg last week that
  the company would test power-priced subscriptions to help boost
  sales.
• But Netflix could actually increase prices in
  other markets, too, and analysts predicted it could happen
  within the next year.

 

For Netflix users who prefer watching on the go, the streaming
giant is testing a plan for you.

Malaysian news-site The Star Online first reported
that Netflix is testing a mobile-only subscription plan that
costs just $4, half the price of a standard plan there. Netflix
confirmed the test to TechCrunch and then USA Today in a statement. As
of now, the plan isn’t being tested in the US, and may never
fully launch. 

“We are always looking for ways to make Netflix more
enjoyable and more accessible to people all over the world,”
Netflix told 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.”

READ MORE: Netflix revealed 17 new Asian
originals meant kickstart growth in the region

Even if the low-cost, mobile-only plan never sees the light
of day, it falls in line with comments Netflix CEO Reed Hastings
made to Bloomberg last week. Hastings
said Netflix would test lower-priced plans in some markets to
boost sales, particularly in Asia where the company also recently
announced 17 new original shows and
films to stimulate growth in the region.

“Leaving prices where they are, we are a very premium
service,” Netflix’s vice president of product Todd Yellin told
Bloomberg.

But that doesn’t mean that Netflix wouldn’t increase prices
in other markets, and it could do it sooner rather than
later.

Analysts at Piper Jaffray surveyed over 1,100 Netflix users
in a report released Monday and found that the majority think
that content on the service has improved in the last year, and
they would be willing to pay 40% more for their subscription
today. Analysts predicted that Netflix could increase prices
within the next year.