Netflix will experiment with cheaper prices in certain markets: report

Netflix CEO Reed Hastings delivered these comments in an interview with ‘Bloomberg’

Netflix app on iPhone

U.S.-based streaming giant Netflix has plans to test cheaper plan prices in certain markets, according to a recent interview between CEO Reed Hastings and Bloomberg.

Hastings didn’t share any details about where the cheaper prices will be tested, just that the company wants to experiment with a fourth tier of service.

Netflix currently offers three plan tiers.

The ‘Basic’ costs $8.99 CAD per month and provides access to standard definition content on a single device.

The ‘Standard’ tier costs $10.99 CAD per month and lets users watch and download high definition content on a maximum of two devices.

The ‘Premium’ tier costs $13.99 CAD per month and provides access to high definition and ultra high definition content on a maximum of four devices.

The streaming service currently boasts approximately 130 million paid subscribers globally, according to the company’s third quarter 2018 earnings report.

Despite the fact that Netflix is currently the dominant streaming service provider, Bloomberg reports that the company’s growth in its Asian markets has stalled.

Netflix reportedly has fewer than two million subscribers in every Asian country in which it operates, despite the fact that Hastings believes that the company could connect with 100 million subscribers just in India.

In an attempt to appeal to Asian markets, Netflix is reportedly developing approximately 100 films and television programs across the continent, including in India, Korea, Japan, Thailand and Taiwan.

As of July 2018, Netflix is also testing a €16.99 (roughly $25.27 CAD) ‘Ultra’ tier in certain European markets.

Source: Bloomberg