Netflix is looking to expand globally and one of its strategies includes testing out a new mobile only subscription that comes with a low price point of about $4/month.
As spotted by TechCrunch, Netflix is targeting Asia for testing the waters with the new mobile plan. The first country to see the new low-cost Netflix plan is Malaysia with a monthly price of RM17 which converts to about $4.
Users who choose this mobile only plan still get unlimited movies and TV shows but are just restricted to mobile-only viewing.
Netflix confirmed the news to TC and added that the trial isn’t limited to Malaysia.
This low-cost Netflix plan certainly seems like a smart move as many people in Asia Pacific countries rely on their smartphone as their primary device. There’s also strong competition from services like HOOQ and Viu with prices that start at $3/month.
The more affordable mobile plan also comes as Netflix is investing in creating local content for Asia, with India being a focal point.
With 12 projects in the works, Apple is also getting close to offering up it own original content. Expectations are for Apple to launch the original shows as early as next March.
Morgan Stanley’s Katy Huberty believes that Apple will end up giving Netflix some real competition within a few years time. Additionally, if things heat up between the companies, the likelihood of Apple losing revenue from Netflix subscriptions through iOS could increase.
