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Netflix Says It Will Test Lower-Price Subscription Plans (bloomberg.com)

Posted by msmash on from the up-next dept.

Netflix says it plans to begin testing lower-priced subscription in some markets in a bid to see if it will help the company boost the number of subscribers, CEO Reed Hastings told Bloomberg. The company has not identified the markets where it will be testing the lower-priced subscription, and has not clarified how soon it intends to conduct these tests. The company will likely consider Asian markets where it is having a tough time gaining the market share against local services that are much aggressively priced.

47 of 77 comments (clear)

  1. Good, but by hcs_$reboot · · Score: 1

    does it mean programs will be even worse than from the expensive version?

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  2. Re:Price isn't the issue by mermeid007 · · Score: 1

    If someone doesn't subscribe what does it matter how good the content is?

  3. Here, let me help by El+Cubano · · Score: 1

    I am a qualified test engineer. Let me help Netflix with the test plan.

    Objective: determine if customers are able to achieve the same level of enjoyment while paying less.

    Procedure: 1. Lower prices.

    Conclusion: Yes, they can.

    If you have to test for this, then I have some bad news for you...

    1. Re:Here, let me help by Anonymous Coward · · Score: 1

      Netflix wants to maximize ARPU*subscribers, not subscribers alone. Lowering prices can increase total revenue and it can decrease total revenue. They're trying to find out which it is. You would need an engineer with a background in control theory for that, not a test engineer.

  4. Economics 101 by TJHook3r · · Score: 1

    Unless Netflix has some sort of luxury-good status, I would be very surprised if lowering costs did not lead to increased market share... except you piss off your loyal customer base, who now pay more than new customers!

    1. Re:Economics 101 by Krakadoom · · Score: 1

      Well, I'm not a subscriber. I probably wont be either, unless they give the damn things away. For me it's not a pricing issue at all, but an issue with the rather limited, lackluster catalogue available in my country. It has become more and more limited. I've tried a trial month a few times over the years, but invariably by the time the month is up, I've watched everything I would want to watch that's on offer. What is the point, then?

      By all means, charge more for a more comprehensive catalogue and I might actually be inclined to stick around. A few dollars more or less does not make it break anything.

    2. Re:Economics 101 by SlaveToTheGrind · · Score: 2

      TFA is clear they're not offering the same service for less -- they're offering less service for less:

      Netflix offers subscriptions at three price levels, and doesn’t plan to lower that of its cheapest tier. Instead, executives are formulating an alternate version of the service, or a fourth tier, that will have different features and cost less.

    3. Re:Economics 101 by squiggleslash · · Score: 1

      except you piss off your loyal customer base, who now pay more than new customers!

      ...for a different service.

      Besides which, the article suggests that the lower prices will be for customers in other countries, and it generally doesn't piss people off that they pay $10 where a median income is around $50K, and people in Tenkayayearistan pay $5 where a median income is $10K for anything else.

      At this point we don't know what Netflix is going to offer, but it doesn't take much imagination to figure out how they can come up with a lower priced plan for developing markets, from streaming CIF resolution video to marking some content (perhaps new third party content) as "Premium" and omitting it from the budget service.

      --
      You are not alone. This is not normal. None of this is normal.
    4. Re:Economics 101 by b0s0z0ku · · Score: 2

      "Low service" might just mean lower-resolution or only being able to view on one screen at a time. Considering that we only have one TV and it's still 720p, that would be a perfect plan for my apartment.

    5. Re:Economics 101 by dgatwood · · Score: 2

      What would be better would be a $3/month plan that provides only Netflix original content. Separate their original content catalog from their shared catalog, which likely has overlap with other content aggregators.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    6. Re:Economics 101 by DontBeAMoran · · Score: 1

      Netflix Canada:

      Basic, CAD$8.99/month
      Watch on 1 screen at a time in Standard Definition. Download videos on 1 phone or tablet.

      Standard, CAD$10.99/month
      Watch on 2 screens at a time. HD available. Download videos on 2 phones or tablets.

      Premium, CAD$13.99/month
      Watch on 4 screens at a time. HD and Ultra HD available. Download videos on 4 phones or tablets.

      --
      #DeleteFacebook
    7. Re:Economics 101 by Carewolf · · Score: 1

      TFA is clear they're not offering the same service for less -- they're offering less service for less:

      But their market strategy has been to force customers into packages they didn't need (not unlikely cable, though with more simulationous views packages instead of more pointless channels)

    8. Re:Economics 101 by AHuxley · · Score: 1

      Depends on the connection speed and number of people. Why pay more for 4K and the ability to watch on extra screens?

      --
      Domestic spying is now "Benign Information Gathering"
  5. A small slugestion by bn-7bc · · Score: 1

    What about a on stream plan thet gives me uhd, as a singele person indonâ(TM)t need or wanr multiple simultsnius streams but I do want UHD, ok I know uhd is still a bit of a premium product so I would be willing to pay a little exstra for singel uhd stream thrn single hd stream, but what us the deail wit paying for streams I would never use, unless I brak the tos and share the account with a friend

    1. Re:A small slugestion by ArchieBunker · · Score: 1

      Are you having a stroke?

      --
      Only the State obtains its revenue by coercion. - Murray Rothbard
    2. Re:A small slugestion by omnichad · · Score: 1

      Put down that iPhone and get an Android with a swipe keyboard.

      I'm in the same boat, but multiple people in the house. Still only need one stream right now. On the one hand, it's an extra they can throw in for basically free (but so is UHD), but on the other hand multiple screen subscriptions are often shared across multiple households.

    3. Re:A small slugestion by Krakadoom · · Score: 1

      Now, now, it's not polite to make fun of stroke victims.

    4. Re:A small slugestion by GoTeam · · Score: 1

      I think I know what you're asking for. They have a 4k level available for monthly subscription. No, they do no have a package that would only allow one stream at a time.

    5. Re:A small slugestion by badbart · · Score: 1

      Put down that iPhone and get an Android with a swipe keyboard.

      I have 3 swipe keyboards for my iPhone. The problem isn't with the input device...

  6. Re:Price isn't the issue by omnichad · · Score: 1

    Yeah, "they" did that. As if content producers wouldn't have drastically raised licensing fees under any other circumstance once they realized the real value. I'd rather Netflix keep their rates less than $100/mo. because that's why I dropped cable.

  7. Hot take by Orrin+Bloquy · · Score: 1

    "What if we charged less?"
    What if your primary creative decision wasn't "we should adapt already existing content and make a character a different race"
    What if you stopped hemorrhaging the movie content you sold us on
    What if you just sold your company to the one actually hosting your content, Amazon, and gave up trying to be a television network

    --
    "Made up/misattributed quote that makes me look smart. I am on /. and I must look smart."
  8. It's not the price it's the content. by Virtucon · · Score: 1

    Sorry, Netflix your content sucks. Your own productions suck, the movies suck because Hollywood hasn't produced anything original in over a decade and now you've decide that politically motivated content is a winner. Fuck that, I can get that free on CNN or MSNBC.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
    1. Re:It's not the price it's the content. by esperto · · Score: 2
      I think dozens of millions of people disagree with you here, including me.

      Their content isn't all wonderful, there are bad shows and movies, but there are also very, very good ones, and most importantly, there is content in a quite wide spectrum, that you can watch at ANYTIME you wish.

      And comparing netflix to CNN and MSNBC is comparing apple to oranges.

    2. Re:It's not the price it's the content. by reboot246 · · Score: 1

      He wasn't comparing Netflix's content to CNN and MSNBC's content. He was comparing their "politically motivated content" to the news station's content. And he's right.

      I have a feeling that millions will feel the same way. I'm certainly not paying to watch propaganda from Netflix.

    3. Re:It's not the price it's the content. by b0s0z0ku · · Score: 1

      Netflix seems to have plenty of non-Hollywood choices (Indian, Chinese, Japanese, European) for films, documentaries, and shows. If anything, it's lacking in Hollywood stuff more than in choice in general.

    4. Re:It's not the price it's the content. by Luthair · · Score: 2

      Netflix has taken to slapping the Netflix label on content which they've exclusively licensed in a region rather than produced, I suspect you'll find those are the 'good ones'. IMO Netflix is pursuing the cable model, its all about the volume not the quality.

    5. Re:It's not the price it's the content. by houghi · · Score: 1

      To be fair, I like apples better than oranges.

      --
      Don't fight for your country, if your country does not fight for you.
  9. I would be happy to pay less by bobstreo · · Score: 1

    $10.99 a month isn't ruinous, but maybe Netflix could create live streams of local television content in my area. 40 or so channels, ala-carte would be nice. I don't need any shopping channels though.

     

    1. Re:I would be happy to pay less by b0s0z0ku · · Score: 1

      Can't you just get a Mohu antenna and get this stuff for $0 per month?

    2. Re:I would be happy to pay less by bobstreo · · Score: 1

      Shopping channels still exist?? I suppose as cheap as they are to produce, they must get some kind of return.

      Shopping channels pay cable companies to be included instead of the other way around.

      local OTA has the shopping channel eating valuable bandwidth that could be used for anything else.

      4 PBS channels and 40-60 other channels (some are low power so unless you live right in the city you can't receive them.)

  10. Re: Price isn't the issue by Malizar · · Score: 1

    Some people have money to burn for convenience. My DirecTV bill was similar, dropped it and converted to Plex and Philo. I changed my viewing habits a bit, and get by much cheaper.

  11. Content... by b0s0z0ku · · Score: 1

    Compared to cable, their content is awesome. Lots of foreign films and TV shows that you can't (legally) get in the US any other way.

    I guess it's bad if you're a sports fan, but NFLX and TV antenna does pretty well for me. Total nut including Internet is about $50/mo.

    1. Re:Content... by b0s0z0ku · · Score: 1

      When I search, it seems to show a somewhat larger selection. Also quite a few Indian, Asian, Eastern European, and Latin American movies, not just European. How are you searching and where are you using Netflix?

    2. Re:Content... by b0s0z0ku · · Score: 1

      I'm in the US, and use it via the website, not the appitty-app. Maybe their app is just broken -- try searching on the main desktop site.

  12. Re:Price isn't the issue by b0s0z0ku · · Score: 1

    The content is more interesting than cable TV if you like foreign and low-budget films, not just re-runs of movies that you saw in the theater last year.

  13. Re:Price isn't the issue by Tokolosh · · Score: 3, Interesting

    Can I turn off autoplay?

    --
    Prove anything by multiplying Huge Number times Tiny Number
  14. Re:Price isn't the issue by b0s0z0ku · · Score: 1

    Older movies is what the Harbor for Rogue Sailors is most suited for.

  15. Can I pay extra for some features? by Anonymous Coward · · Score: 1

    (1) Ability to turn off ALL autoplaying everywhere including when browsing and at the end of any show.
    (2) Ability to have things I have already seen FILTERED from the various lists.
    (3) Ability to to have things I have watched that I liked be automatically re-added to the "Currently Watching" list when a new season becomes available.
    (4) Ability to FILTER based on "original language"

    Most of these things (except #2) existed at one time, but NetFlix has done away with them.

    1. Re:Can I pay extra for some features? by b0s0z0ku · · Score: 1

      (1) I think there's a Chrome extension that blocks some of the auto-preview features.
      (4) Shows up as a search suggestion if you search for a specific language.

  16. Better idea by nightfire-unique · · Score: 1

    Netflix should make a "contract" or promise to its users to never, ever, under any circumstances, allow anyone to work in upper management who would even suggest the idea of advertisements.

    Right at the top of every Netflix page, should be text that says:

    We value your business and will never, ever show you advertisements.

    While it might not win them many new customers today, it's probably the single most important thing they can do to safeguard their dominance in the future.

    --
    A government is a body of people notably ungoverned - AC
  17. Re:Price isn't the issue by Shotgun · · Score: 1, Flamebait

    But...but...we're doubling the number of "comedians" that expect you to laugh because they said, "Trump bad". What more could you want?

    --
    Aah, change is good. -- Rafiki
    Yeah, but it ain't easy. -- Simba
  18. The reason I'm not a subscriber by sremick · · Score: 1

    ...is because the library is fickle, and shrinking. I'm not interested in throwing money down the trash for a "library" where the stuff I love today could be gone next month. And studies have shown that the library is getting smaller and smaller, which more leaving the library than is being added back to it. Sorry, screw you Netflx and all the other streamers... I'll stick with owning my own streaming library via my Plex server and my owned legit 1000 or so discs.

  19. Re:Price isn't the issue by FrozenFrog · · Score: 1

    1) Log on to netflix.com.
    2) Go to "Account"
    3) At the bottom "MY PROFILE", pick "Playback settings"
    4) De-select "Play next episode automatically"

  20. Re:Price isn't the issue by Darinbob · · Score: 1

    Netflix is not taking away the content, instead the content owners are taking the content away from Netflix.

  21. Re:Price isn't the issue by Anonymous Coward · · Score: 1

    Can I turn off autoplay?

    Did you actually mean that obnoxious auto preview (i.e. softening users to eventually introduce external ads) functionality? Auto play is more about automatically playing the next episode after N seconds.

  22. Its overrun by foreign language content by lusid1 · · Score: 1

    I don't know how much time I've wasted browsing the catalog, finding something sorta interesting, only to discover its in random-foreign-language with dicey subs. I'll sit there and read subs sometimes, but the content has to be on the extreme upper end of fantastic for me to sit through that crap. If they're going to use random imports to pump & dump the library, they're gonna need to at least invest in some dubbing.

  23. Jasa bangun rumah mewah by mataair · · Score: 1

    www.mataair.id Jasa bangun rumah mewah – jasa arsitek Jakarta – desain dan bangun rumah – jasa design interior – jasa kontraktor Jakarta Detail layanan : Architect, Interior Design, Design and Build, Build and Development