Monday , March 27 2023

In search of subscribers in Asia, Netflik can reduce the price – BUSINESS Epoch


Netflik has 130 million subscribers around the world, out of which 78 million are outside the US (Photo: Getti Images via BBC Nevs Brazil)

A Netflik announced that they will have to test a cheaper version of their service in an attempt to increase sales in some markets. Company director Reed Hastings, however, did not undertake a price reduction in all markets, nor did he say when the tests would be conducted.

Reducing the price will be a novelty for Netflik, which managed to maintain or increase the value of its subscription on major markets, while increasing investment in local productions. Currently, the company offers three different subscription packages with different prices. The idea is not that the price of the package is cheaper, but to create a new version or a fourth package, reports Bloomberg.

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Netflik began to gain strength in the United States offering a series, television and movies at a subscription fee for cable television, encouraging millions of people to cancel traditional services. Now the world's largest platform for striming is trying to grow in countries where income per capita is significantly lower.

Prices vary by location. In the US, the cheapest subscription is $ 7.99 ($ ​​30). However, in Asia Netflik has competitors such as Viu, offers a free and paid package of about $ 2 to $ 5 per month ($ 7.50 to $ 18.80)

"If we leave prices where they are, we will become a very premium service," says Todd Iellin, vice president of Netflik products. The world's largest online streaming service, with more than 130 million subscribers, will seek new consumers in Asia after its debut in the region three years ago.

The company recently announced it will produce 17 new series in five Asian countries and develop more than 100 film and television projects in India, South Korea, Japan, Thailand and Taiwan. Headquartered in Singapore, Netflik plans to enter into contracts in Seoul, Tokyo and Mumbai.

However, growth in Asia is still slow. The company has yet to reach 2 million subscribers in each country, according to Media Partners Asia. According to Hastings, Netflik could reach 100 million consumers only in India.

"[A Netflix] will not be able to reach 100 million subscribers in India with the current price strategy, "said Vivek Couto, director of Media Partners Asia. In the country, Netflik has signatures for 500, 650 or 800 rupees (R $ 25, R $ 33.50 and R $ 41 ).

The competitor, Hotstar Premium, has packages starting from 199 rupees a month ($ 10). Hastings, however, says he is not concerned about competitors and that the company does not demand as much capillary as IouTube. For example, in India, 100 million people speak English and earn enough money to pay for services like Netflik.

However, despite recognition of low-cost tests, Netflik is also interested in raising prices in other markets. This is because the company has invested heavily in cash flow in the production of TV series and films, and has managed to raise the price in recent years without losing customers.

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