In a recent interview with Bloomberg, Netflix CEO Reed Hastings has revealed the company is thinking about introducing a lower-priced plan to boost sales in select Asian markets.
While he did not mention when or where the lower-priced tier test will be conducted, it is the first time the film and television streaming service has said it is working on a new kind of subscription that will have different features and cost less.
A lower-priced offering would be a departure for Netflix, which has maintained or raised prices in major markets as it adds content and invests in local productions to draw subscribers.
Netflix streaming first gained traction in the U.S. by offering a buffet of TV shows and movies for a fraction of the cost of pay-TV, encouraging millions of people to cancel their cable and satellite subscriptions — also known as cord-cutting. Now, the world’s largest streaming service is looking for growth in countries where per-capita income is significantly lower.
Beyond experimental price cuts, the streaming giant is also interested in raising prices in other markets.
Netflix is currently the world’s biggest video streaming service provider with more than 130 million subscribers and is now looking to expand its customer base in Asia. At a recent event in Singapore, the company announced 17 new shows from five Asian countries.
With a local headquarters in Singapore, Netflix is developing more than 100 film and TV projects across India, Korea, Japan, Thailand, and Taiwan. The company is also looking to hire in Seoul, Tokyo, and Mumbai.