Analysis: Netflix International Pricing High vs. Pay-TV ARPU

LONDON: Digital TV Research has analyzed the fees that Netflix charges in international markets compared to what pay-TV ARPU is in those countries, finding that the rates appear high in the short term.

Looking broadly, Netflix charges $8 per month for one screen, $10 per month for two screens and $12 per month for four screens and HD content in its 130 new territories. While these rates are reasonable in developed countries, they are high for developing markets.

The research firm expects prices to be tweaked in the mid-term, but remain high in the short-term view.

In Australia, Netflix’s fees represent only 9 percent of the pay-TV ARPU and the comparison is just 10 percent in the U.S. However, in India, the fees for the service are 252 percent of the pay-TV ARPU. In Thailand it’s 79 percent, Poland 71 percent and Germany 56 percent.

In the U.K., Netflix’s fees are 30 percent of the pay-TV ARPU in the country. In France, it’s 36 percent.

Mexico and Brazil are relatively low (21 percent and 17 percent, respectively), but that’s because Netflix has been long-established in the region and does not charge as much as in the new countries.