Netflix is reportedly testing a new introductory offer whereby subscribers need to pay only Rs 5 for the first month. Old users will not be able to avail this offer.
An obvious attempt to entice new users into taking out a subscription, Netflix, rolled out this plan to some users on February 21. The company does not have a definite time frame for concluding the tests and gauging customer reaction.
The company will reserve the right to give only a few select users the option of paying Rs 5 for the first month. Netflix ran a similar campaign prior to launching a mobile-only plan for Rs. 199 a month in 2019.
Depending on the success of the test, Netflix may roll it out to all users. The promotion enables people to watch the entire Netflix catalogue – including award-winning films, series and documentaries – with all the features for Rs. 5 for the first month.
The introductory offer is valid for users irrespective of the subscription tier they opt for. Netflix has four plans – Rs 199 for “mobile,” Rs 499 for “basic”, Rs 649 for “standard”, and Rs 799 for “premium”, depending on the number of concurrent log-ins and the resolution and quality of video playback.
Netflix will be hoping that its new offer will be able to grab eyeballs and hook new users to their expanding catalogue of international programming. The newly announced promotional tactic, however, might work out to be marginally costlier for new members when compared to those who subscribed last year.
The company previously offered a one-month free trial for new users. It was phased out in India in December 2019. While Rs 5 for the first month will not defray the revenue lost per user, the streaming platform will be looking to drive subscriber growth whilst weeding out surreptitious accounts that go dormant or cancel after the free trial ends.
The California-based company said last month that it added 423,000 subscribers in the United States in the fourth quarter, missing its forecast of 600,000 additions. International subscribers rose by 8.3 million, beating its internal estimate of 7 million new users. Netflix now has 167 million subscribers worldwide.
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