In a letter to investors (via The Verge ), Netflix confirmed that it will finally launch a cheaper streaming plan. The plan will be a Netflix mobile service starting in India, with the opportunity to expand to other countries later.
Netflix has tested a mobile plan the first time several times in several different countries. The plan allows you to see as much Netflix content as you want, but only on a smartphone or tablet at a time, not on your television, not on a streaming device (such as a Roku), and not on your PC or laptop .
The company described the Netflix mobile network plan as "an effective way to introduce a larger number of people into India to Netflix and to further expand our business in a market where Pay TV ARPU (average revenue per user) is low (under $ 5) . "
We don't know what the price will be for the Netflix mobile-only plan, but the test running it performed earlier had it at 250 rupees (~ $ 3.63) per month. The current price for the floor plan in India is 500 rupees (~ $ 7.27), which is the lowest price available.
Similarly, the base price in the US is $ 8.99 per month.
Although the company did not & # 39; t presents a direct correlation, the announcement of this new strategy probably has something to do with the poor earnings and subscriber growth report the company pushed out today. The report confirms that the company has lost $ 544 million over the past three months, adding only 2.7 million new subscribers as it is estimated to get twice as many.
By introducing a new, incredibly cheap option for people to start seeing Netflix, the company can help increase these numbers.
It is not clear when or even if Netflix would bring a mobile-only plan to other countries, including the United States. We must see and see how this new plan works in the India market first.
What do you think? Want to subscribe to this Netflix mobile plan in India? Did you want it to come to your country? Please let us know in the comments.
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