Netflix will expand testing of mobile-only plans into fresh markets, after racking up better-than-expected subscription numbers in India during Q3.
In an earnings statement, the company said it aimed to attract more mobile-only users by simplifying sign-up procedures. Looking to capitalise on the success in India, Netflix also plans to increase the amount of content produced in the country.
“Our approach with pricing is to grow revenue and so far, uptake and retention on our mobile plan in India has been better than our initial testing suggested”, Netflix said.
“While still only a very small percentage of our total subscriber base, we’re continuing to test mobile-only plans in other markets.”
It offered little detail on its expansion strategy, though it is likely to replicate the low-price strategy which delivered the positive result in India.
The company also highlighted “a very large market opportunity” in the US, with its service accounting for less than 10 per cent of TV screen time and “much less than that” in mobile.
It played down the threat of increased competition from Disney, Apple, HBO Max and Peacock, noting the companies’ portion of the overall market was still small compared to TV viewing.
The company generated net income of $665 million during the quarter, up from $403 million in Q3 2018, with revenue of $5.2 billion up from $3.99 billion.Subscribe to our daily newsletter Back