Netflix Considers Ad-Supported Streaming After Big Drop in Subscriptions
Published on April 21, 2022
If you are someone who loves to see Netflix content on the go, you might be in luck. The streaming giant is considering adding mobile-only plans to its suite of packages on offer for its content. The company is currently testing the mobile-only subscriptions in Malaysia which cost half as much as the standard subscription plans.
Netflix is currently working on more than 100 projects based in India, Japan, Thailand, Korea, and Taiwan. If the streaming giant wants to break into the Asian market, it needs to reinvent its plans as local offerings are far more cost-effective and offer global content.
Netflix CEO Reed Hastings revealed last week that the company is not worried about local competitors, but pricing strategy is something the world's most popular streaming service needs to focus on. Amongst the 1.3 billion people in India, 100 million people speak English and earn enough to afford a Netflix subscription.
However, with the Malaysia trial ongoing, we can expect similar trials to expand to other countries. The company has not provided any other details outside of confirming the trial. The rigid pricing by the company has often been criticized. Vivek Couto, executive director of Media Partners Asia, retorted stating “At what point do these guys start saying we need to change our pricing. He’s not going to get 100 million subscribers in India with the current strategy.”
Asian rivals like Hotstar, iFlix (a Sky initiative), HOOQ and Viu are priced at approximately $3 per month which is less than half of what Netflix charges currently. The streaming giant will not only have to cut down on prices but also focus on local content. India has been one of the primary targets in Asia and multiple TV shows, and movies have been released based in the country. The mobile-only package is the first time Netflix has changed its pricing strategy and the plans becoming a reality will definitely attract more users to the platform from more regions.
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