Netflix Offering a Cheaper Subscription for New Customers to Compete with Amazon

Netflix Offering a Cheaper Subscription for New Customers to Compete with Amazon

Netflix is making efforts to boost the revenue it generates from subscriptions in a bid to buy more licenses for streaming movie and TV shows.

A cheaper subscription is being tested by Netflix for new customers, which means that the company has to stay prepared for another competitive onslaught from Amazon in 2014.

Now, Netflix has offered a plan for $6.99 a month to its customers. The plan by the biggest video-streaming service allows people watch on only one screen at a time. Whereas the basic streaming service offered by the company currently costs $7.99 a month and allows to watch on two screens at the same time.

The company has come up with a new offer to test subscriptions for new customers by figuring out how many screens customers use to access the service.

The company is trying to give Amazon a run for its money by competing with the Amazon video-streaming service included in its prime subscription. The price for it is $79 a year with free two-day shipping.

Arvind Bhatia, an analyst at Sterne Agee, said, "While the lower price could attract new subscribers, it could also somewhat cannibalize current subscribers, given how easy it is to cancel and re-sign up for the service".


FrenchTribune Specials

Cosmic rays does not cause birth defects

According to a new study, cosmic radiations that reach Earth are not strong enough to cause any birth defects.

The study shows that major solar events that send radiation toward Earth do not cause birth defects. The study found that the amount of damaging solar radiation reaching the planet is not enough to cause concern. The researchers...

Most Popular

Crew working to save whale stuck in lagoon on Great Barrier Reef

Wildlife experts and crew members are working to save...

SKA Pathfinder discovers galaxy five billion light years away

A high-tech radio telescope, SKA Pathfinder telescope in...

Leakage leads to Immediate Landing Of NASA’s Massive Balloon

NASA's massive heavy-lift balloon which took off from...

Chile's Calbuco Volcano Eruption Causes Massive Economic Damage

Chile's Calbuco volcano eruption has not only caused...

Poll

Can Greece Come out of Economic Problems: