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

New App transforms Ordinary Smartphone into a Cosmic Ray Detector

Researchers have developed a smartphone app capable of detecting radioactive particles. After downloading the Android app, users will be able to capture the particles that are created when cosmic rays enter earth's atmosphere.

According to researchers, cosmic rays are radioactive particles that come from supernovas. Immediately after...

Most Popular

More Number of Stink Bugs making way into Central Indiana homes

A rise has been witnessed in the number of stink bugs...

First confirmed case of Ebola virus in the US

The US health officials on Tuesday announced the first...

Evidences suggest ancient Glacier was Once Present at Bottom of Grand Canyon of

By making the use of satellite images, researchers...

Poll

Can Greece Come out of Economic Problems: