The cost of data is the one of the major factors why streaming apps like Netflix have not caught traction in Uganda. The company is reportedly planning to experiment with lower prices in some markets like India and Africa, according to CEO Reed Hastings in an interview with Bloomberg last week.
For now, details on the actual plan to test cheaper Netflix subscriptions are extremely sketchy. The CEO wouldn’t commit to whether Netflix would actually lower prices in current markets or just offer a cheaper option in places where Netflix doesn’t currently operate. He also wouldn’t say when or where the rumored plans would be offered.
According to Bloomberg, the cheaper tier won’t quite be the same Netflix that you’re used to. Instead of just dropping the lowest-priced version of Netflix (currently $7.99 per month) to an even cheaper price point, the company is reportedly planning to test new pricing tiers that would offer different features than the pricier plans. But, again, there aren’t any details about what that would entail.
A way to increase its subscription base
Still, a cheaper, less feature-filled version of Netflix could make sense in some markets like India and several countries in Africa, which Hastings noted has 100 million potential customers for Netflix. But a cheaper service that offers features more tailored to that marketplace could compete better with video services like DSTVNow and iFlix. This way the company can increase its subscription base.
Of course, all of this is still extremely early on, seeing as the company has yet to formally announce the cheaper plan at all. Still, given the ever-shifting state of the streaming market, it’s interesting to see that the company is willing to at least consider a change to keep up with the industry.
