Netflix Testing Pre-Paid Subscriptions

Netflix is reportedly testing discounted pre-paid subscriptions in India — a strategy the SVOD behemoth could expand globally.

The Economic Times of India, citing sources, said Netflix is testing discounted three-month, six-month and 12-month subscriptions as a means of luring new subs and generating increased revenue up front.

Pre-paid SVOD subscriptions aren’t new. Amazon Prime Video, Sling TV and Disney+ offer discounts for pre-paid service agreements. But Netflix hasn’t done so until now. The subscription streaming pioneer is seeking alternative ways to attract subs in an over-the-top video ecosystem that now includes Disney and Apple.

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Netflix has also tested a mobile-only plan in India due to the region’s immense mobile market. At the end of 2016, there were more than 1.1 billion mobile wireless subscribers in India. Some of the biggest mobile telecom operators include Bharti, Vodafone (Netflix), and Idea, who have over 600 million Indian subscribers combined.

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“We believe our members may value the flexibility that comes from being able to pay for a few months at once. As always, this is a test and we will only introduce it more broadly if people find it useful,” a Netflix rep said in a statement.

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