Culture

Netflix testing cheaper mobile-only subscription tiers

The number of people who are using their mobile devices as a primary option to stream Netflix is growing worldwide, which makes it to no surprise that the company is reportedly testing a new payment plan targeting specifically mobile users. Reports say that Netflix  is exploring a mobile only subscription plan that would cut the membership cost by 50%. Tablet and phones account for 35% of global Netflix signups.The growth of mobile Netflix users, especially in countries where mobile usage outpaces time spent watching traditional TV or time on a computer, is constant.

Cameron Johnson, Netflix’s director of product innovation, said in July that 60 percent of members around the world now open Netflix’s mobile app at least once a month to watch a TV show or movie. Part of Netflix’s product plan includes creating better tools for mobile users who can now download TV shows for offline viewing. The company is leaning into customers who want to spend more time on their phones and tablets, and it’s seemingly introducing a cheaper tier specifically for those customers.

It appears Netflix is testing these new tiers in international markets. That makes sense considering mobile usage as a primary option for browsing and consuming entertainment is increasingly popular in Asian and East Asian countries. Mobile-first continents, like Asia and Africa, are seeing the biggest increase in consistent mobile users, according to a study from earlier this year. While mobile usage continues to expand and grow in the United States  77 percent of Americans use smartphone devices, according to a Pew report from this year it’s still not as big of a market.

Netflix also wants to expand its reach in international markets since that’s where the biggest concentration of growth is. Nearly 79 million of Netflix’s total of 137 million subscribers are international, according to a recent earnings report. Offering cheaper plans targeted at primary mobile users is a way to increase that growth.

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