Why Netflix Is Offering Cheaper Mobile-Only Plans in Some Markets
Late last year, Netflix (NASDAQ: NFLX) confirmed that it was beginning to test cheaper, mobile-only subscription plans in select international markets. Today, Netflix is running these plans in India, Malaysia, the Philippines and perhaps other test markets. In India, Netflix's three subscription plans cost the equivalent of $6.98, $9.08, and $11.18 per month at today's exchange rate while the mobile-only plan costs the equivalent of $2.78.
Some investors worry the lower prices of the mobile-only plans are bad for Netflix as they bring in less per subscriber, but a bigger-picture look shows that what's far more important is overall subscriber growth and total revenue.
India has a population of about 1.4 billion and an estimated 298 million households. But it is estimated that only about 18 million of those households have fixed internet connections. Yet there are an estimated 374 million smartphone users in India, and that figure is projected to increase to 442 million by 2022.
Source Fool.com
