Good news! Netflix testing cheaper subscription plans as it seeks more users in India, Asia

Netflix Inc. said it will test a lower-priced version of its film and television streaming service in some markets to boost sales.

In India, Netflix offers subscriptions at Rs 500 a month ($6.85), Rs 650 and Rs 800. (Image: AFP)

New Delhi: As the millennial users are largely shifting their television preference to digital services platforms such as Netflix and Amazon Prime, Netflix Inc. said it will test a lower-priced version of its film and television streaming service in some markets to boost sales. Though the company has not officially announced lowering of prices anywhere but does want to experiment, said Netflix CEO Reed Hastings during his recent interview with news agency Bloomberg. This new pricing strategy could be a game-changer for Nextflix, which has maintained or even increased prices in major markets as it adds content and invest in local production to attract more customers. While the US-based media services provider alluded to experiments with cheaper subscription deals in a conference call last month on its earnings, this is for the first time it has informed that lower-priced subscription can be given in some markets. Currently, Netflix offers subscriptions at three price levels, and doesn’t plan to lower that of its cheapest tier. Instead, executives are formulating an alternate version of the service, or a fourth tier, that will have different features and cost less, the Bloomberg report said. The media services firm broke several records and gained massive traction in the US by offering a range of TV shows and movies for a fraction of the cost of pay-TV. This also forced millions of people to cancel their cable and satellite subscriptions. Now, the world’s largest streaming service is looking for growth in countries where per-capita income is significantly lower. In India, Netflix offers subscriptions at Rs 500 a month ($6.85), Rs 650 and Rs 800. Star India’s Hotstar Premium streaming service, by comparison, sells for 199 rupees a month. Hastings also said that he isn’t too worried about local competitors, nor is he trying to be as ubiquitous as YouTube. In India, the company is targeting 100 million or so people who speak some English, and earn enough money to afford a video service like Netflix. (With agency inputs)