A way to gain ground in some countries.

To make its products and services profitable, Netflix needs a maximum number of subscribers. On the side of the US or Europe, users are already conquered with figures in the green for several quarters already. It is on the side of emerging markets that the streaming giant may have more trouble convincing. And for good reason: while a subscription at around 10 euros is more available to us, to put such a price in other can be more complicated. So from the perspective of conquering these emerging markets as Bloomberg reveals that Netflix plancherait just on a reduced subscription.

A reduced price to conquer new users

This is in any case the wish of Reed Hastings, big boss of Netflix, according to the very informed Bloomberg. The man would have mentioned a reduced subscription during an interview and this, in the conquest of emerging markets. A way for the giant to win shares in countries where to subscribe to the service is not necessarily obvious financially. With numbers in the green for several quarters, Netflix wants to continue its global expansion. But this is not the only market mentioned by Reed Hastings. And for good reason: Netflix is still struggling to convince Chinese users and this cheaper strategy could help to find a place.

To progress, Netflix needs a maximum of users. This strategy of conquering emerging countries via attractive prices is reminiscent of some smartphone companies, such as Xiaomi or Honor, which conquered emerging countries with a policy similar to that mentioned by Reed Hastings.