After initial success in India, Netflix’s mobile-only plan might well find itself launched in other price-sensitive markets as well, according to recent announcements from the company.
Netflix CEO Reed Hastings hinted at the expanded rollout after reflecting on the success of the lower-cost plan in India after it launched mid 2019.
With the more recent additions (particularly in some markets) of Apple TV and Disney+ launching late last year, Netflix is feeling the pinch, and needs to do more particularly in price-sensitive markets to capture and keep its market share.
In India, the company is spending more than $US 400 million on local content through until the end of 2020, and it is hoping that the discounted $3 per month mobile-only plan will help drive a return on that investment, especially in markets where the current $10 minimum is too high.
Netflix has not specified which countries will try out the mobile-only subscription next. However, with the arrival of Apple TV+ ($5/month but with free 1-year for purchase of new Apple hardware) and Disney+ ($7 per month on average and with an impressive catalog), Netflix really has to step up its game and have a more affordable monthly subscription in places where the $12.99 per month fee is a little too much.