Netflix is testing a mobile-only subscription plan that costs half the price

David Dettmann/Netflix‘Black Mirror’
  • Netflix is testing a mobile-only, half-priced subscription plan in countries like Malaysia.
  • Netflix said in a statement to USA Today, “we are testing to understand consumer interest in a mobile-only plan in some countries.”
  • Netflix CEO Reed Hastings told Bloomberg last week that the company would test power-priced subscriptions to help boost sales.
  • But Netflix could actually increase prices in other markets, too, and analysts predicted it could happen within the next year.

For Netflix users who prefer watching on the go, the streaming giant is testing a plan for you.

Malaysian news-site The Star Online first reported that Netflix is testing a mobile-only subscription plan that costs just $US4, half the price of a standard plan there. Netflix confirmed the test to TechCrunch and then USA Today in a statement. As of now, the plan isn’t being tested in the US, and may never fully launch.

“We are always looking for ways to make Netflix more enjoyable and more accessible to people all over the world,” Netflix told USA Today. “In this case, we are testing to understand consumer interest in a mobile-only plan in some countries. 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.”


READ MORE: Netflix revealed 17 new Asian originals meant kickstart growth in the region

Even if the low-cost, mobile-only plan never sees the light of day, it falls in line with comments Netflix CEO Reed Hastings made to Bloomberg last week. Hastings said Netflix would test lower-priced plans in some markets to boost sales, particularly in Asia where the company also recently announced 17 new original shows and movies to stimulate growth in the region.

“Leaving prices where they are, we are a very premium service,” Netflix’s vice president of product Todd Yellin told Bloomberg.

But that doesn’t mean that Netflix wouldn’t increase prices in other markets, and it could do it sooner rather than later.

Analysts at Piper Jaffray surveyed over 1,100 Netflix users in a report released Monday and found that the majority think that content on the service has improved in the last year, and they would be willing to pay 40% more for their subscription today. Analysts predicted that Netflix could increase prices within the next year.

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