Netflix to trial lower-priced tier, may look to Asia for test

Netflix LA HQNetflix has said that it will test a lower-priced version of its popular television and film streaming service in a bid to boost sales in some markets.

The company’s CEO, Reed Hastings, told Bloomberg in an interview that it does want to experiment with lower prices, but has yet to commit to when or where these tests will be conducted.

In the past, Netflix has chosen to maintain or raise prices in major markets as it adds more content and invests locally. However, now the company has decided its time to depart from its previous model.

Though it already has three pricing tiers, Netflix doesn’t intend to lower the price of its cheapest price level, instead opting to create a fourth tier with different features and a lower cost.

Markets in Asia seem like the most likely candidates to trial a new version of the service with growth being slow in the region. It has already announced 17 new shows from five Asian countries, is developing more than 100 film and TV projects across India, Korea, Japan, Thailand, and Taiwan, has setup a local headquarters in Singapore, and is looking to hire in Seoul, Tokyo, and Mumbai.