CAPE TOWN – Netflix on Wednesday said that it has plans to launch a new subscription plan which only allows users to stream content on a mobile device.
This was announced at an investor meeting, where the company also noted that it missed its target to increase paid memberships by 5 million in the second quarter of 2019 as previously forecast.
In its second-quarter financial results released Wednesday, Netflix said the number of its paid members rose by 2.7 million, less than the figure of 5.5 million in the same period of last year.
In a letter to investors, the company said it has been testing this plan in a number of countries, and it will launch the service in Q3 of 2019.
Netflix said its mobile-only plan will initially launch in India, although it could expand into other markets and this could hopefully help increase its paid membership count.
Netflix said in the letter: “After several months of testing, we’ve decided to roll out a lower-priced mobile-screen plan in India to complement our existing plans,”
“We believe this plan, which will launch in Q3, will be an effective way to introduce a larger number of people in India to Netflix and to further expand our business in a market where Pay-TV ARPU is low (below $5).”
BUSINESS REPORT ONLINE