Netflix (NASDAQ: NFLX) continues to fire on all cylinders, with another quarter of record subscriber growth behind it. Revenue is surging as customers flock to the service, even as the company successfully rolls out price increases .
For a closer look at how Netflix's business is faring and how management is thinking about opportunities ahead, here's a look at some key quotes from the company's third-quarter earnings call . In these excerpts, management discusses its tests with lower price tiers, bundled deals, and movie theaters.
Experimenting with lower price tiers
Late last year, Netflix started testing mobile-only plans in developing markets as a way to make its service more accessible and broaden its global reach. When asked during the company's first-quarter earnings call about how these tests were progressing, Netflix chief product officer Greg Peters seemed excited about the potential to reach these markets but admitted that the company hasn't finalized its model for reaching these customers yet.
Peters explained:
The company is looking for "the right set of features at the right price point in a way that the consumer can relate to," added Peters. The experience needs to be "natural and intuitive to the consumer." Peters noted that rolling out a lower price tier will likely be especially effective for member growth in India.
The success of bundled deals
One way Netflix adds new subscribers is by bundling its service with pay-TV offerings or cellular service offerings. Peters indicated bundled offerings are not only working well but also represent a key growth area for the company.
What about movie theaters?
When asked about where movie theaters may fit into the company's future, Netflix chief content officer Ted Sarandos said the company is focusing on what is in its control: producing and releasing great movies. But he said he wished its films could be available in theaters at the same time they are released to watch at home.
Sarandos believes creating the best films possible will create opportunities for the company over the long haul.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
