The biggest restriction, however, for the mobile-only plan is that all content will only be available in SD (standard definition) with HD streams only being available on the more expensive Standard or Premium plans. At the moment it's only in Malaysia and a few other test countries, but if it proves a successful strategy, it'd make sense for Netflix to roll it out everywhere.
Netflix today unveiled a new subscription tier in Malaysia that's aimed at mobile devices only, but also comes in at less than half the price of its standard subscription.
Netflix has so far resisted calls for lower-priced subscription packages in certain markets, but after a rough second quarter, the media behemoth chose to push further overseas and tap into huge markets across Asia that are now gaining more and more access to high-speed internet through mobile phones. Bear in mind; the new Mobile-only plan only supports same as what Basic plan now is offering.
This makes their services more low-priced than the cheapest package of the streaming service behemoth.
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According to the report, it seems that the testing is now taking place in Malaysia, with Netflix CEO Reed Hastings saying in an interview with Bloomberg last week that the company plans on testing new plans throughout Asia.
Asked specifically by The Economic Times if the company would look to lower prices in order to reach mass-market appeal in India, Hastings said: "You may be right for our second hundred million [subscribers], but for our first hundred million I think we're pretty good pricing".
Bloomberg reported that on the latest earnings call in October, Netflix Chief Product Officer Gregory Peters said the company was trying to "figure out how to expand the market as we grow". We will experiment with other pricing models and see how that does in terms of being able to accelerate our growth and get more access.
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