Netflix decides against cheaper subscription in Korea

Global streaming service Netflix said Wednesday it has concluded its trial of mobile-only subscription plans for South Koreans users, signaling it will not roll out the pricing scheme that is cheaper than current membership plans.

“The tests have concluded,” Netflix said in a statement sent to the The Korea Herald. “These tests we conduct may not get rolled out as member plans. Netflix will continue its efforts to provide the best entertainment experience for its members.”

Netflix said last week it had rolled out new subscription plans in Korea at prices cheaper than the current scheme. The monthly payment for the basic plan was as low as 6,500 won ($5.70) if consumers limited use of the service to mobile devices.

This new monthly pricing plan was about 3,000 won cheaper than Netflix’s cheapest membership billing scheme for South Korean subscribers. The streaming service had even brought in a billing system that costs just 1,625 won per week.

Netflix then indicated the pricing plans would be being applied “on a trial basis” until it decides whether to make the scheme available for all subscribers here. These cheaper pricing plans had been only available for a random group of subscribers selected by Netflix.

Nigel Baptiste, Director of Partner Engagement. Netflix

“We are constantly looking for ways including testing to make Netflix more enjoyable and accessible for our members,” said the company.

South Korea was the latest country where Netflix has tried out mobile-only subscriptions at cheaper prices. The streaming giant applies different pricing strategies depending upon the region.

While US consumers are expected to see monthly fees for the basic plan increase from $8 to $9 this month, Netflix has introduced cheaper mobile-only pricing plans for subscribers in some Asian countries.

Last month, Netflix tried out a mobile-only plan at 250 Indian rupees ($3.63) per month, half its original plan that cost 500 Indian rupees ($7.27). Netflix launched a similar half-price mobile plan in Malaysia in November last year.

(jasonyeo@heraldcorp.com)