Netflix suffered a substantial drop in the number of subscribers for the video streaming platform in the US, and blamed the price hikes it made to ensure it would continue to operate. Following this announcement that somewhat scared investors, the American company confirmed that it will launch a new type of subscription specifically for mobile terminals, which will not allow you to view Netflix content on computers either.
Netflix will launch these special subscriptions initially in India, but will expand them to other areas of the globe if they are successful enough there, and more than likely that will happen. Netflix will launch special subscriptions for mobile phones during the third fiscal quarter of 2019 in India, they will have lower prices than the current subscriptions, which is quite normal, in the end.
Netflix announces a MAJOR CHANGE after a Serious LOSS
Netflix will sell these subscriptions at much lower prices than the current subscriptions, the average price paid by customers for services of this kind being less than 5 dollars at the moment. Those from Netflix will have to offer not only cheap subscriptions, but also variety for customers, so that they can choose between several options before settling on one that allows them to use the platform.
"In a letter to investors released this afternoon, Netflix said the mobile-only plan "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 (average revenue per user) is low (below $5).” Netflix announced the new plan alongside financial results that revealed a big miss on customer growth that was way off the mark of the company's forecast."
Netflix it will seriously limit the quality of the movies and series that are available on the platform for these cheap subscriptions, and that's mainly because the phones don't need a very high resolution anyway. Netflix also reduces its operating costs, because streaming at a low resolution does not require as many resources, so it allows itself to offer customers something more convenient to attract them to its platform.
Netflix will launch these subscriptions in Romania at some point, but for now it is not known when, nor how much they might cost when they will be offered.
