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Netflix to test a new yearly subscription plan

If rolled out widely, the plan would allow consumers to save 50 percent if they paid for a full year of the service

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On the heels of the launch of Disney+, Netflix appears to be mulling a change to its pricing plan options. A new, cheaper pricing plan is currently being tested in India, Reuters reports. 

Under the plan, new and existing subscribers who pay for a full year of the service can save 50 percent. Those who sign up for six months or three months of the service get 30 percent and 20 percent discounts, respectively.

When applied to the most expensive plan in the U.S. (the Premium plan), consumers would end up paying $7.99 per month if they opted for a one-time payment of $95.94. The Premium plan currently costs $15.99 per month.

"We believe that our members may value the flexibility that comes from being able to pay for a few months at once. As always, this is a test and we will only introduce it more broadly if people find it useful," a spokeswoman for Netflix India told Reuters. 

Competitive pricing

Although Netflix has said it’s not worried about competition from Disney+, the introduction of an alternative pricing option on Netflix would allow it to offer similar pricing when compared to its streaming service rival. 

Disney’s new service costs just $6.99 per month, or $5.83 for those who pay for a full year of Disney+ access. The service garnered more than 10 million subscribers at launch and could hit as many as 20 million subscribers by the end of the year, according to recent estimates from Credit Suisse.  

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