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HomeNewsNew MediaMobile only pricings helped Netflix mop up lots of subscribers
Monday, 27 January 2020 13:14

Mobile only pricings helped Netflix mop up lots of subscribers

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In a country like India where users are highly price sensitive, the leading video streaming platform Netflix knew that lower priced monthly plans would work in its favour. In Fact, mobile-only plan in India has helped the company to add incremental subscribers. 

As per IHS Markit estimates in 2019, Netflix had 1.2 million paying subscribers in India.

Netflix Chief Product Officer Greg Peters said: “Lower-priced plans have paid rich dividends in India, Indonesia, and Malaysia. You’ve got the three countries correct and we’ve seen in the performance across those three countries is that, because we’ve added this price at a lower price point this year at a lower price point, we’ve been able to add incremental subscribers, which is great.”

As reported, in July 2019, Netflix had launched a mobile-only plan for India priced at Rs 199 per month. The mobile plan allows members to enjoy all of Netflix’s content—uninterrupted and without ads – in standard definition (SD) on one smartphone or tablet at a time.

He added that the company has also seen an increase in subscriber retention. He also hinted that the lower-priced plans might be rolled out in other markets as well. “We’ve see increase in retention not only at that mobile plan, but in other plans as well. And net that’s a revenue-positive action for us and so we’re super excited about that. We think that that’s a pretty good indicator that there might be other countries around the world where that kind of offering will work as well.”

He said: “We’re going to try out and we’ll really try and be active and innovative in that area to try and improve the accessibility of the service for more and more people around the world but in a way which we think is long-term revenue optimising as well.”

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