Netflix is thinking about launching cheaper price tiers, according to a recent interview with company executives, but most Netflix customers reading this probably won’t get them. The company hasn’t said for sure whether it will offer these new tiers, describing them as an experiment, and it indicates that the lower prices would come with different features than what current subscribers can access.
Netflix currently offers three price tiers, the cheapest for US customers being $7.99/month. Subscribers get different benefits and access depending on their tier, namely in the video resolution available and the number of simultaneous streams supported by the different plans.
Some markets may soon have entirely different options, though. Bloomberg reports that Netflix may experiment with different plans in select markets, specifically naming China and other Asian countries. It’s pointed out that local competitors undercut Netflix’s existing prices and make it something like a premium option for customers in those regions.
Netflix’s prices vary in different markets where it is offered, such as in India where the lowest tier plan starts at 500 rupees, or about $6.85/month, which is more than double what a local premium video service charges.
In the interview, company CEO Reed Hastings indicated that Netflix isn’t terribly concerned about local competitors that undercut that cost, explaining that in India, at least, the company targets a certain number of people who speak English and have the income level to afford Netflix.
Despite that, Netflix still struggles to grow in Asia, where it reportedly has less than 2 million subscribers in each country. Experiments with lowered prices may help the company determine whether new tiers will draw in customers. On the flip side, the report claims that Netflix is also considering price increase experiments in other markets, but specific regions weren’t stated.