Why it matters: Netflix might still be the king of streaming services, but it's facing increased competition from the likes of Disney+. Could one of the company’s strategies be to introduce a discounted payment plan for those who sign-up long-term? Possibly, as it’s already testing the scheme in India.
For $6.99 per month, Disney+ can be viewed on four different devices simultaneously and in 4K, where available. If you subscribe for a whole year in one go, that monthly cost works out at just $5.83. Amazon Prime also offers a saving when subscribing for 12 months. But Netflix’s cheapest plan is $8.99, only allows SD viewing on one device at a time, and has no long-term discounts.
To try and make its service more appealing, Netflix is testing discount plans in India, though they’re only available for new and returning customers—not current ones. The longer someone signs-up for, the bigger the discount. Committing for three months knocks 20 percent off the subscription, six months brings a 30 percent saving, and 12 months will discount the price by 50 percent.
“We believe that our members may value the flexibility that comes from being able to pay for a few months at once,” a Netflix spokesperson said. “This is a test and we will only introduce it more broadly if people find it useful.”
Gadgets 360 spotted a Twitter user who posted an image of the subscription plans, which showed up on the Netflix Android app.
With Netflix seemingly raising its prices at regular intervals, a discount plan like this should tempt people to sign-up or return to the service. The question now is whether it will expand beyond India and into other markets.