Netflix shares opened higher Friday, after the TV streaming service shared plans to introduce a new, cheaper, subscription plan, below the current basic package. The move comes after the US company reported better-than-expected subscriber growth figures in the third quarter.
By 1445 BST, Netflix shares were 2.10% higher at $354.00. The stock reversed recent gains following its recent earnings report.
Netflix to introduce new subscription tier
Netflix said this week that it is planning to introduce a new, cheaper subscription plan option that is below it’s existing ‘basic’ package, which costs £5.99 in the UK.
While the streaming service gained more new subscribers in the third quarter than had been expected, it continues to target ambitious growth going forward. And it appears that another, cheaper package offer is one of the ways in which it plans to achieve that.
“We’ll experiment with other pricing models not only for India, but around the world that allow us to sort of broaden access by providing a pricing tier that sits below our current lowest tier,” said Netflix’s chief product officer, Gregory Peters, in its earnings call.
“And we’ll see how that does in terms of being able to accelerate our growth and get more access,” he added.
Netflix adds and cancels, shows
In addition to that news, Netflix announced a raft of new programming, including social media documentary film, ‘The American Meme’ and Original film, ‘A Pesar De Todo’ from its Spanish content plans.
However, not only is Netflix continuing to add new titles to its content, the TV streaming service has been cancelling existing series, too.
The new seventh series of ‘Orange is the New Black’ will show in 2019 and will also be the last. However, it’s not only long-running success stories that are to be axed. The Marvel ‘Iron Fist’ series is going after two series and ‘Everything Sucks’ will be removed from Netflix’s programming, after just one series.