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Netflix starts testing cheaper mobile only subscription plan

Netflix has launched its first cheaper subscription plan which is for the smartphone app only. It is priced at half of its current basic plan.

The Netflix logo is shown in this illustration photograph in Encinitas, California October 14, 2014.
The Netflix logo is shown in this illustration photograph in Encinitas, California October 14, 2014. (REUTERS)

Netflix Inc is testing a mobile-only subscription plan in Malaysia priced at roughly half its current basic plan in the country, the global leader in video streaming said on Wednesday.

Netflix's mobile only plan costs just 17 Malaysian ringgit ($4.05) a month, compared to its Basic plan which costs 33 ringgit ($7.87).

The company declined to give additional details about which countries it was testing in.

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Chief Executive Reed Hastings had quashed speculation that the streaming video company would cut prices for the hotly competitive India market but other officials have suggested it could trial cheaper plans in small markets.

"We are testing to understand consumer interest in a mobile-only plan in some countries," Netflix said in an emailed response to Reuters questions.

"Generally, we try out lots of new ideas at any given time, and they can vary in how long they last and who sees them. We may not ever roll out the features or elements included in a test."

Research firm Statista estimates that Netflix has 132,000 subscribers in Malaysia, making it one of the smallest markets for the streaming giant.

 

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