Speaking with Bloomberg in an interview last Friday, Netflix CEO Reed Hastings revealed that Netflix will test a new, lower-priced tier of its streaming service to potentially boost sales in foreign markets.
That’s basically all there is to know at the moment, as Hastings wouldn’t confirm when the test will take place, which markets would see the lower price tier, or even whether or not the lower price would be permanent. The primary goal of the new tier would be to lure in more Asian subscribers, so there’s no telling if US users (or users in any current market) would see a new, cheaper plan alongside the three plans that Netflix currently offers.
Netflix currently offer three plans: $7.99 a month for a Basic plan with the ability to watch on one screen in standard definition, $10.99 a month for the Standard plan with two screens in HD, and the Premium plan with four screens and Ultra HD resolution video. According to Bloomberg, Netflix executives are currently toying with the idea of a fourth tier which would have different features and cost even less than the Basic plan.
This isn’t the first sign of Netflix increasing its reach throughout Asia. As Bloomberg points out, Netflix announced “17 new shows from five Asian countries” just last week, is developing over 100 film and TV projects in countries such as India and Japan, and even set up a local headquarters in Singapore a few years ago.
“At what point do these guys start saying we need to change our pricing,” Vivek Couto, executive director of Media Partners Asia, told Bloomberg in regards to Netflix growing its footprint with the pricing scheme it has in place. “He’s not going to get 100 million subscribers in India with the current strategy.”
It’s still unclear if this new, cheaper plan will ever see the light of day, but with Disney and Apple primed to enter the increasingly competitive market in the coming years, Netflix will need to continue to evolve.