NEW YORK • In casting a wider net for customers, Netflix will test a lower-priced version of its film-and television-streaming service in some markets.
The company has not committed to lowering prices anywhere, but wants to experiment, chief executive officer Reed Hastings said in an interview.
He did not indicate when or where the test would be conducted.
A lower-priced offering would be a departure for Netflix, which has maintained or raised prices in major markets as the streaming giant adds content and invests in local productions to draw subscribers.
While the company had alluded to experiments with cheaper subscription deals in a conference call last month on its earnings, this is the first time Netflix has said it will test a lower-priced tier in some markets.
It offers subscriptions at three price levels and does not plan to lower that of its cheapest tier.
Instead, executives are formulating an alternative version of the service, or a fourth tier, that will have different features and cost less.
Netflix streaming first gained traction in the United States by offering a buffet of television shows and movies for a fraction of the cost of pay television, encouraging millions of people to cancel their cable and satellite subscriptions.
Now, the world's largest streaming service is looking for growth in countries where per-capita income is significantly lower. Prices vary by territory and the cheapest US plan is US$7.99 (S$11).
Netflix, with more than 130 million subscribers, is looking to Asia as fertile territory for new customers after entering the region three years ago.
The company announced 17 new shows from five Asian countries at an event last week in Singapore, where it hosted more than 100 journalists and social media influencers from across the region.
The service is developing more than 100 film and television projects across India, South Korea, Japan, Thailand and Taiwan and has set up a local headquarters in Singapore. It is also looking to hire in Seoul, Tokyo and Mumbai.
Still, growth has been slow in the region. The company has yet to amass two million subscribers in any country, according to estimates by Media Partners Asia.
Mr Hastings said Netflix could attract as many as 100 million customers in India alone.
But Mr Vivek Couto, executive director of consultancy Media Partners Asia, said: "At what point do these guys start saying we need to change our pricing?
"He's not going to get 100 million subscribers in India with the current strategy."
In India, Netflix offers subscriptions at 500 rupees (S$9.52), 650 rupees and 800 rupees a month.
Star India's Hotstar Premium streaming service, by comparison, sells for 199 rupees a month.
Mr Hastings said he was not too worried about local competitors or to be as ubiquitous as YouTube.
In India, for example, the company is targeting the 100 million or so people who speak some English and earn enough money to afford a video service such as Netflix.
BLOOMBERG
