Netflix to test lower-priced plans in Asia

Bloomberg

Netflix Inc. said it will test a lower-priced version of its film and television streaming service in some markets to boost sales.
The company hasn’t committed to lowering prices anywhere, but does want to experiment, Chief Executive Officer Reed Hastings said. He didn’t say when or where the test would be conducted.
A lower-priced offering would be a departure for Netflix, which has maintained or raised prices in major markets as it adds content and invests in local productions to draw
subscribers.
While the company alluded to experiments with cheaper subscription deals in a conference call last month on its earnings, this is the first time Netflix has said it will test a lower-priced tier in some markets.
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.
Netflix streaming first gained traction in the US by offering a buffet of TV shows and movies for a fraction of the cost of pay-TV, encouraging millions of people to cancel their cable and satellite subscriptions — also known as cord-cutting. Now, the world’s largest streaming service is looking for growth in countries where per-capita income is significantly lower.
Prices vary a bit by territory, and the cheapest US plan is about $7.99. Many in Asia, including PCCW Ltd.’s Viu, offer a free service and a paid service, with the latter typically priced between $2 and $5 a month.
“Leaving prices where they are, we are a very premium service,” Todd Yellin, Netflix’s vice president of product.
Netflix, the world’s largest streaming service with more than 130 million subscribers, is looking to Asia as fertile territory for new customers after entering the region three years ago. The company announced 17 new shows from five Asian countries at an event last week in Singapore, where it hosted more than 100 journalists and social media influencers from across the region.
The service is developing more than 100 film and TV projects across India, Korea, Japan, Thailand and Taiwan and has set up a local headquarters in Singapore. It is also looking
to hire in Seoul, Tokyo and Mumbai. In India, Netflix offers subscriptions at 500 rupees a month ($6.85), 650 rupees and 800 rupees. Star India’s Hotstar Premium streaming service,
by comparison, sells for 199 rupees a month.