Customer Retention

Netflix is testing cheaper mobile-only subscription tiers

Netflix is testing cheaper mobile-only subscription tiers

Excerpts from the article by Julia Alexander on The Verge

The number of people who use mobile devices as a primary option to stream Netflix is growing worldwide, which makes it no surprise that the company is reportedly testing a new payment plan specifically targeting mobile users.

A report from Malaysian newspaper The Star says that Netflix is exploring a mobile-only subscription plan that would cut the membership cost by approximately 50 percent. Phones and tablets account for 35 percent of global Netflix signups, according to a report from Recode earlier this year. The growth of mobile Netflix users, especially in countries where mobile usage outpaces time spent watching traditional TV or time on a computer, is constant.

Cameron Johnson, Netflix’s director of product innovation, said in July that 60 percent of members around the world now open Netflix’s mobile app at least once a month to watch a TV show or movie. Part of Netflix’s product plan includes creating better tools for mobile users who can now download TV shows for offline viewing. The company is leaning into customers who want to spend more time on their phones and tablets, and it’s seemingly introducing a cheaper tier specifically for those customers.

“A MOBILE-ONLY SUBSCRIPTION PLAN COULD CUT THE MEMBERSHIP COST BY APPROXIMATELY 50 PERCENT”

Right now, it appears Netflix is testing these new tiers in international markets. That makes sense considering mobile usage as a primary option for browsing and consuming entertainment is increasingly popular in Asian and East Asian countries. Mobile-first continents, like Asia and Africa, are seeing the biggest increase in consistent mobile users, according to a study from earlier this year. While mobile usage continues to expand and grow in the United States — 77 percent of Americans use smartphone devices, according to a Pew report from this year — it’s still not as big of a market.

Netflix also wants to expand its reach in international markets since that’s where the biggest concentration of growth is. Nearly 79 million of Netflix’s total of 137 million subscribers are international, according to a recent earnings report. Offering cheaper plans targeted at primary mobile users is a way to increase that growth.

The Verge has reached out to Netflix to see if there are plans to bring mobile-specific subscription tiers to the United States.

Disney unveils the name of its Netflix competitor

Disney unveils the name of its Netflix competitor, plus new Marvel and Star Wars shows

Excerpts from the article by Matt Binder on Mashable

Disney’s Netflix competitor finally has a name.

The long-awaited Disney video-streaming service will be known simply as Disney+. Company CEO Bob Iger unveiled the name during a Thursday earnings call. Iger also announced that the service will launch in the U.S. in late 2019.

Disney has been planning its video-streaming service since at least 2017 when the company said it was going to end its multi-year contract with Netflix and pull all of its content off the service. The reason for doing so was simple. Disney wants to move all of its properties — including Disney classics, Pixar movies, the Marvel Cinematic Universe, and Star Wars films — to its very own streaming platform.

In a press release following the Disney+ announcement, the company also released more information about some of the new content planned for the service.

Diego Luna will reprise his Star Wars role as Cassian Andor in a spinoff series that takes place before the events of Rogue One: A Star Wars Story. This will be the second Star Wars TV series on the Disney+ service following the announcement of Jon Favrou’s The Mandalorian series last month.

As for the Marvel, Disney confirmed a Loki series that was rumored last month. Tom Hiddleston will be returning to the MCU to play Loki on the Disney+ show. However, there’s no word yet on a Scarlet Witch series that was also previously discussed.

Other Disney properties mentioned in the press release that will receive new stories in the form of movies or TV shows include Disney Channel’s High School Musical and Pixar’s Monsters Inc.

We don’t yet know how much the Disney+ streaming service will cost, but you can now go to Disney+’s official website to sign up for future updates.