We’ve been following the extensive testing Netflix has been running on new subscription models for quite some time now. In November, the streaming giant launched a mobile-only model in Malaysia, which has since spread to other regions around Asia. As well as offering a reduced-price plan for mobile viewers, the tests have also seen cheaper standard SD plans offered to users and single device plans, too.
Earlier this month, we learned that Netflix is also testing a weekly subscription model in India. The new Indian model offers a weekly subscription for as little 95 cents for a week’s access to the full Netflix catalog with the Ultra HD package, Netflix’s most expensive subscription, coming in at around $2.90 a week. Sadly, however, for our readers in the U.S., UK, Canada, and Australia, it looks like these new cheaper subscription models won’t be available to them any time soon.
Netflix has decided against rolling out cheaper subscription models in South Korea
Speaking in the Business section of the Korea Herald, Netflix has said that it has finished testing the mobile-only subscription model in South Korea. A spokesperson said, “The tests have concluded… These tests we conduct may not get rolled out as member plans. Netflix will continue its efforts to provide the best entertainment experience for its members.” This means that the tests are over, and Netflix won’t be extending the mobile-only subscription plans, that are cheaper than the current more established plans, any further.
As was the case with all the other pricing tests we’ve previously reported on, there were various price points in Korea beginning with the 6,500 won price plan. Costing the equivalent of around $5.70, this monthly plan gave users access to the full Netflix catalog on a single mobile device. This works out at around 3,000 won ($2.58) a month cheaper than Netflix’s standard cheapest plan.
Out of all the Asian countries where Netflix has been testing these new subscription models, South Korea has the most advanced economy. It is bad news for Netflix viewers in countries like the U.S. and the UK then that Netflix has concluded that there is no need for them to offer a cut-price subscription to South Koreans. It is a pretty safe bet that if Netflix doesn’t think it needs to do it there, it won’t think it’ll need to do it in countries with more advanced economies either.
In fact, the truth is likely to be much worse for Netflix viewers in the West. As we discussed when we reported on a recent note from a Netflix shareholder’s meeting, Netflix growth is continuing despite recent price hikes in markets like the U.S., Canada, the UK, and Brazil. This means, if anything, we can only expect to see Netflix prices increase further in the future.