Netflix (NFLX - Free Report) recently launched its mobile-only subscription plan in the Philippines for P149 per month, as per director Patrick Flemming.
In addition to the existing basic, standard and premium plans, the new mobile plan will enable users to watch films and shows, uninterrupted and without ads, on one smartphone or tablet at a time.
The plan will also be launched in Thailand simultaneously and individuals will have to download the Netflix app or visit the streaming platform’s website and select the P149 per month plan to avail the benefits.
New Plan to Expand International Footprint
The new mobile-only plan is a part of Netflix’s strategy of expanding its global presence. Notably, the low price of these plans will enable the company to enter the low-income demographic of emerging international markets.
The plan was initially launched in India in July 2019, the success of which led to its launch in Indonesia and Malaysia.
Notably, Asia-Pacific (APAC) revenues surged 51% year over year to $418.1 million in fourth-quarter 2019. Moreover, the company stated that the plans have led to increased user retention in these regions.
The mobile-only plan is expected to succeed in the Philippines and drive the top line. The company stated that Filipinos watch two times more Netflix on mobile than other parts of the world, while two out of three Filipinos download content on their phones to watch Netflix on the go.
Further, the platform has a rich catalogue of Filipino content. Netflix released its first original Filipino movie – Dead Kids – in Dec, 2019. These factors are expected to increase its subscriber base in the country.
Mobile-Only Plan to Strengthen Competitive Position
Competition is becoming more intense in the streaming space with platforms like Apple’s (AAPL - Free Report) Apple TV+ and Disney’s (DIS - Free Report) Disney+ rushing to strengthen their presence in international markets.
Notably, Disney+ is set to launch in India on Mar 29, with Hotstar that has a large subscriber base in the country. Moreover, Amazon’s (AMZN - Free Report) prime video already has a strong global presence.
Netflix’s mobile-only subscription plan is likely to provide it with a competitive edge in emerging markets. Other streaming service providers have no similar plans to cater to the low-income demographic. Further, the company’s focus on developing local content is expected to aid it in acquiring new subscribers and retain existing ones.
Netflix currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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