Netflix’s international pricing under the spotlight
Monday, February 15th, 2016According to Digital TV Research, many were surprised when Netflix announced its global pricing strategy at CES. Very broadly, Netflix charges $8/month for one screen, $10/month for two screens and $12/month for four screens and HD content in its 130 new territories.
These rates are reasonable in developed countries, but are high in developing ones. Reed Hastings, the CEO of Netflix, explained that the company was trying – at least initially – to target the elite in developing markets.
Therefore prices are likely to be tweaked in the mid-term, but the rates will appear high in the short term.
Source: Digital TV Research
Calculations are based on cheapest Netflix subscription as a percentage of the average pay TV ARPU.
So, Netflix is asking Indians to pay two and a half times as much as they would for the average pay TV subscription. At the other end of the scale, Australians would be forgiven for thinking that Netflix is cheap as its fees represent only 9% of the pay TV ARPU.
Note that proportions in the established markets of Brazil and Mexico are low – Netflix has been long-established in the region, and does not charge as much as in the new countries.
Latest News
- Plex has largest FAST line-up with 1,112 channels
- TV3 migrates from on-prem servers to AWS Cloud with Redge
- Virgin Media partners with PubMatic to scale FAST advertising
- Interactive TV news channel unveiled by ROXi and Sinclair
- Spideo and OTTera unveil personalisation collaboration at NAB Show 2024
- Amagi integrates Intertrust DRM for FAST services