Disney+ comes to Canada and the Netherlands on Nov. 12, will support nearly all major platforms at launch

Disney+ will have an international launch that begins at the same time as its rollout in the U.S., Disney revealed. The company will be launching its digital streaming service on November 12 in Canada and The Netherlands on November 12, and will be coming to Australia and New Zealand the following week. The streaming service will also support virtually every device and operating system from day one.

Disney+ will be available on iOS, Apple TV, Google Chromecast, Android, Android TV, PlayStation 4, Roku, and Xbox One at launch, which is pretty much an exhaustive list of everywhere someone might want to watch it, leaving aside some smaller proprietary smart TV systems. That, combined with the day-and-date global markets, should be a clear indicator that Disney wants its service to be available to as many customers as possible, as quickly as possible.

Through Apple’s iPhone, iPad and Apple TV devices, customers will be able to subscribe via in-app purchase. Disney+ will also be fully integrated with Apple’s TV app, which is getting an update in iOS 13 in hopes of becoming even more useful as a central hub for all a user’s video content. The one notable exception on the list of supported devices and platforms is Amazon’s Fire TV, which could change closer to launch depending on negotiations.

In terms of pricing, the service will run $8.99 per month or $89.99 per year in Canada, and €6.99 per month (or €69.99 per year) in the Netherlands. In Australia, it’ll be $8.99 per month or $89.99 per year, and in New Zealand, it’ll be $9.99 and $99.99 per year. All prices are in local currency.

That compares pretty well with the $6.99 per month (or $69.99 yearly) asking price in the U.S., and undercuts the Netflix pricing in those markets, too. This is just the Disney+ service on its own, however, not the combined bundle that includes ESPN Plus and Hulu for $12.99 per month, which is probably more comparable to Netflix in terms of breadth of content offering.

 

Week in Review: Snapchat beats a dead horse

Hey. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on TechCrunch this week to surface my favorites for your reading pleasure.

Last week, I talked about how Netflix might have some rough times ahead as Disney barrels towards it.


3d video spectacles 3

The big story

There is plenty to be said about the potential of smart glasses. I write about them at length for TechCrunch and I’ve talked to a lot of founders doing cool stuff. That being said, I don’t have any idea what Snap is doing with the introduction of a third-generation of its Spectacles video sunglasses.

The first-gen were a marketing smash hit, their sales proved to be a major failure for the company which bet big and seemingly walked away with a landfill’s worth of the glasses.

Snap’s latest version of Spectacles were announced in Vogue this week, they are much more expensive at $380 and their main feature is that they have two cameras which capture images in light depth which can lead to these cute little 3D boomerangs. One one hand, it’s nice to see the company showing perseverance with a tough market, on the other it’s kind of funny to see them push the same rock up the hill again.

Snap is having an awesome 2019 after a laughably bad 2018, the stock has recovered from record lows and is trading in its IPO price wheelhouse. It seems like they’re ripe for something new and exciting, not beautiful yet iterative.

The $150 Spectacles 2 are still for sale, though they seem quite a bit dated-looking at this point. Spectacles 3 seem to be geared entirely towards women, and I’m sure they made that call after seeing the active users of previous generations, but given the write-down they took on the first-generation, something tells me that Snap’s continued experimentation here is borne out of some stubbornness form Spiegel and the higher-ups who want the Snap brand to live in a high fashion world and want to be at the forefront of an AR industry that seems to have already moved onto different things.

Send me feedback
on Twitter @lucasmtny or email
[email protected]

On to the rest of the week’s news.

tumblr phone sold

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • WordPress buys Tumblr for chump change
    Tumblr, a game-changing blogging network that shifted online habits and exited for $1.1 billion just changed hands after Verizon (which owns TechCrunch) unloaded the property for a reported $3 million. Read more about this nightmarish deal here.
  • Trump gives American hardware a holiday season pass on tariffs 
    The ongoing trade war with China generally seems to be rough news for American companies deeply intertwined with the manufacturing centers there, but Trump is giving U.S. companies a Christmas reprieve from the tariffs, allowing certain types of hardware to be exempt from the recent rate increases through December. Read more here.
  • Facebook loses one last acquisition co-founder
    This week, the final remnant of Facebook’s major acquisitions left the company. Oculus co-founder Nate Mitchell announced he was leaving. Now, Instagram, WhatsApp and Oculus are all helmed by Facebook leadership and not a single co-founder from the three companies remains onboard. Read more here.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. Facebook’s turn in audio transcription debacle:
    [Facebook transcribed users’ audio messages without permission]
  2. Google’s hate speech detection algorithms get critiqued:
    [Racial bias observed in hate speech detection algorithm from Google]
  3. Amazon has a little email mishap:
    [Amazon customers say they received emails for other people’s orders]

Adam Neumann (WeWork) at TechCrunch Disrupt NY 2017

Extra Crunch

Our premium subscription service had another week of interesting deep dives. My colleague Danny Crichton wrote about the “tech” conundrum that is WeWork and the questions that are still unanswered after the company filed documents this week to go public.

WeWork’s S-1 misses these three key points

…How is margin changing at its older locations? How is margin changing as it opens up in places like India, with very different costs and revenues? How do those margins change over time as a property matures? WeWork spills serious amounts of ink saying that these numbers do get better … without seemingly being willing to actually offer up the numbers themselves…

Here are some of our other top reads this week for premium subscribers. This week, we published a major deep dive into the world’s next music unicorn and we dug deep into marketplace startups.

Sign up for more newsletters in your inbox (including this one) here.

Week in Review: Netflix’s big problem and Apple’s thinnest product yet

Hey. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on TechCrunch this week to surface my favorites for your reading pleasure.

Last week, I talked about the Capital One breach and how Equifax taught us that irresponsible actions only affect companies in the PR department.


Thomas Trutschel/Photothek via Getty Images

The big story

Disney is going to eat Netflix’s lunch.

The content giant announced this week that when Disney+ launches, it will be shipping a $12.99 bundle that brings its Disney+ streaming service, ESPN+ and ad-supported Hulu together into a single-pay package. That price brings those three services together for the same cost as Netflix and is $5 cheaper that what you would spend on each of the services individually.

This announcement from Disney comes after Netflix stuttered in its most recent earnings, missing big on its subscriber add while actually losing subscribers in the U.S.

Netflix isn’t the aggregator it once was; its library is consistently shifting, with original series taking the dominant position. As much as Netflix is spending on content, there’s simply no way that it can operate on the same plane as Disney, which has been making massive content buys and is circling around to snap up the market by acquiring its way into consumers’ homes.

Disney has slowly amassed control of Hulu through buying out various stakeholders, but now that it shifts the platform’s weight, it’s pretty clear that it will use it as a selling point for its time-honed in-house content, which it is still expanding.

The streaming wars have been raging for years, but as the services seem to become more like what they’ve replaced, Disney seems poised to take control.

Send me feedback
on Twitter @lucasmtny or email
[email protected]

On to the rest of the week’s news.

Screen Shot 2019 03 25 at 1.37.32 PM 1

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • Apple Card rolls out
    Months after its public debut, Apple has begun rolling out its Apple Card credit card. We got our hands on the new Apple Card app, so check out more about what it’s like here.
  • Amid a struggling smartphone market, Samsung introduces new flagships
    The smartphone market is in a low-key free fall, but there’s not much for hardware makers to do than keep innovating. Samsung announced the release of two new phones for its Note series, with new features including a time-of-flight 3D scanning camera, a larger size and… no headphone jack. Read more here.
  • FedEx ties up ground contract with Amazon
    As Amazon rapidly attempts to build out its own air fleet to compete with FedEx’s planes, FedEx confirmed this week that it’s ending its ground-delivery contract with Amazon. Read more here.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. Facebook could get fined billions more:
    [Facebook could face billions in potential damages as court rules facial recognition lawsuit can proceed]
  2. Instagram gets its own Cambridge Analytica:
    [Instagram ad partner secretly sucked up and tracked millions of users’ locations and stories]

Extra Crunch

Our premium subscription service had another week of interesting deep dives. My colleague Sarah Buhr had a few great conversations with VCs in the healthtech space and distilled some of their investment theses into a report.

What leading HealthTech VCs are investing in 

Why is tech still aiming for the healthcare industry? It seems full of endless regulatory hurdles or stories of misguided founders with no knowledge of the space, running headlong into it, only to fall on their faces…

It’s easy to shake our fists at fool-hardy founders hoping to cash in on an industry that cannot rely on the old motto “move fast and break things.” But it doesn’t have to be the code tech lives or dies by.

So which startups have the mojo to keep at it and rise to the top? Venture capitalists often get to see a lot before deciding to invest. So we asked a few of our favorite health VC’s to share their insights.

Here are some of our other top reads this week for premium subscribers. This week, we talked about how to raise funding in August, a month not typically known for ease of access to VCs, and my colleague Ron dove into the MapR fire sale that took place this week:

We’re excited to ramp up The Station, a new TechCrunch newsletter all about mobility. Each week, in addition to curating the biggest transportation news, Kirsten Korosec will provide analysis, original reporting and insider tips. Sign up here to get The Station in your inbox beginning this month.

Daily Crunch: Disney reveals streaming bundle

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. Disney will bundle Hulu, ESPN+ and Disney+ for a monthly price of $12.99

Disney’s streaming services just became even more appealing, since you’ll be able to get the full bundle for the same price as Netflix’s standard U.S. plan.

On its own, Disney+ will cost $6.99 per month, and it will include a big chunk of the Disney-Fox content library, as well as new shows set in the Star Wars and Marvel universes.

2. Twitter ‘fesses up to more adtech leaks

Twitter may have shared user data with advertising partners, even when a user had expressly told it not to.

3. Trump attacks Google and Sundar Pichai in morning tweets

Frankly, just copy-pasting that headline made me feel tired, but these kinds of comments could have a real impact on Google’s plans.

Amazon Fulfilment Center In Sosnowiec

4. FedEx ends ground-delivery contract with Amazon

This means FedEx will not be providing any last-mile delivery service for Amazon, which is expanding its own shipping capabilities considerably.

5. In a 130-page court filing, Kik claims the SEC’s lawsuit ‘twists’ the facts about its online token

The Securities and Exchange Commission filed a lawsuit claiming that Kik’s $100 million token sale was illegal. Now the company filed a 130-page response, asking for an early trial date and dismissal of the complaint, while also alleging that the SEC is “twisting” the facts about its token, called Kin.

6. What tech gets right about healthcare

Why is tech still aiming for the healthcare industry? It seems full of endless regulatory hurdles, not to mention stories of misguided founders with no knowledge of the space. But sometimes, startups figure it out. (Extra Crunch membership required.)

7. Segment CEO Peter Reinhardt is coming to TechCrunch Sessions: Enterprise to discuss customer experience management

As part of a panel that includes Qualtrics’ Julie Larson-Green and Adobe’s Amit Ahuja, Reinhardt will discuss the difficulties companies face in collecting data to build a picture of the customer, then using it to deliver more meaningful experiences.

Disney will bundle Hulu, ESPN+ and Disney+ for a monthly price of $12.99

Disney’s upcoming streaming service Disney+ will be available as a $12.99 monthly bundle with ESPN+ and ad-supported Hulu.

That means the full Disney bundle (it owns ESPN and — thanks to the Fox acquisition — has a controlling stake in Hulu) will cost the same amount as Netflix’s standard U.S. plan. That’s also about $5 less than you’d pay every month if you signed up for each of the three separate subscriptions.

Disney CEO Bob Iger announced the pricing this afternoon as part of the company’s third quarter earnings call, as reported in Axios and elsewhere.

Earlier this year, the company announced that Disney+ will cost $6.99 per month as a standalone subscription, and will launch on November 12. At the time, executives said they were “likely” to offer a bundle with ESPN+ and Hulu as well, but they didn’t provide any concrete plans or details.

At launch, Disney+ will include a big swath of the joint Disney-Fox content library, including the first two Star Wars trilogies, the latest Marvel movies, “The Simpsons” and the Signature collection of classic Disney films, with more content added as it gets freed up from third-party deals.

Disney is also developing original shows for the service, include several Marvel shows and the Star Wars spinoff “The Mandalorian.”

 

Walmart-owned Flipkart bets on free video streaming service and Hindi support to win next 200 million internet users in India

India’s e-commerce giant Flipkart said on Tuesday that it is revamping its shopping app to add support for Hindi language, a video streaming service, and an audio-visual assistant, the latest in a series of recent efforts to expand its reach in the country.

The Walmart-owned company, which leads the local market, told TechCrunch that it has started to rollout the features on its shopping app and will push it to all its existing users in within next 20 days.

Only 10% of India’s 1.3 billion people speak English. Flipkart said it has been working to customize its entire platform for several months to add support for Hindi. As part of the revamp, the company is also introducing an “audio visual guided navigation” feature, also built in Hindi, that is aimed at first time internet users — and existing online users not comfortable with making transactions online — to make it easier for them to navigate the site and place orders.

As part of the accessibility push, Flipkart is also introducing an in-app video streaming feature dubbed ‘Flipkart Videos,’ that will syndicate movies, shows, and other long-form and short form content from a number of production houses and movie studios, the company said.

Its rival Amazon India added support for Hindi last year, though the feature is limited to basic text translation.

The inclusion of video streaming feature comes as Indians’ appetite for consuming media content on the internet has ballooned in the recent years. Hotstar, a Disney-owned video streaming service, has amassed more than 300 million monthly active users in the country.

Flipkart said the video streaming feature will enable it to invite a new segment of users to its platform who are online but don’t currently shop on the internet. Even as more than 500 million users are connected to the web in India, only tens of millions of them currently shop there. The streaming feature will be accessible to all users at no charge without any loyalty program, a company spokesperson said, refuting a recent media report that claimed the feature will be limited to loyalty customers.

“In the past 10 years our vision and ethos have been to solve for ‘Real India,’ create India specific tech solutions, here in India. What we are rolling out when it comes to addressing the needs of the next 200 million users in our country, is taking forward those founding principles of access and affordability,” said Kalyan Krishnamurthy, Group CEO of Flipkart, in a statement.

“We strongly believe that the next phase of our growth is rooted in loyalty , democratizing e-commerce and the country will continue seeing more innovations that stem from our deep understanding of Indian consumers, especially middle India.”

Flipkart said it is also attempting to make it easier for users to discover items on its app. So it is introducing a feed called ‘Flipkart Ideas’ that will populate short form videos, animated images, polls and quizzes.

For instance, a user may see a short form video that shows a sportsperson wearing a pair of sneakers, a t-shirt, a pair of jeans, and a cap. If they tap on the video, they will see the exact items the person in the video is wearing and other similar items. One more tap, and the user would be able to purchase any of those items.

The company said it is working with more than 400 influencers and 30 brands to create content that will appear on the feed.

All of these features, as well as a gaming section that Flipkart introduced last year, will now appear at the bottom of the screen for easier navigation, the company said. More than half a million users in India play mini-games on Flipkart everyday. The company said it will introduce more games to boost engagement levels and offer loyalty points as incentive to customers.

It’s fight night in Las Vegas: Elon Musk’s Loop vs the Monorail

The latest bout in Las Vegas is not taking place in a raucous casino boxing ring, but in the hushed rooms of planning committees. The reigning champion, the Las Vegas Monorail, is facing upstart challenger The Boring Company, in a fight to decide the future of Sin City’s urban transportation.

In May, the Las Vegas Convention and Visitors Authority approved a $48.7 million contract for The Boring Company (TBC) to design and build a short underground transit system at the city’s Convention Center, using Tesla electric vehicles running through narrow tunnels. 

The ambitious contract calls for the system, called the LVCC Loop, to be up and running in time for the city’s biggest trade show, CES, in January 2021. Over the next 18 months, TBC has to construct one pedestrian tunnel, two 0.8-mile vehicle tunnels and three underground stations, as well as modify and test seven-seater Tesla cars to carry up to 16 people. 

TBC has already submitted detailed construction plans to the city for review, which TechCrunch has obtained, and recently raised $120 million in funding. The company hopes to start construction later this summer. 

But TBC’s tight deadlines — and the payments it receives by meeting them — could be jeopardized by the Monorail’s concerns that the new tunnels could undermine its own system. To connect two parts of the Convention Center, the Loop will have to burrow directly beneath the Monorail’s elevated tracks.

‘It will shut the Monorail down’

“The proposed underground people mover system intersects our existing system route, and it appears the presented tunnel alignment interferes with our existing columns for the Las Vegas Monorail system and creates significant concern regarding both vertical and lateral loads,” Monorail CEO Curtis Myles wrote in a letter to Clark County planning officials in June.

Chris Kaempfer, a lawyer representing the Monorail, clarified the company’s position at a meeting of the Winchester Town Advisory Board the same day.

“When you have columns that would be this close, you’re not just concerned about contact with the columns, you’re also concerned about vibration,” Kaempfer said. “The record has to be absolutely clear, if there’s any damage at all to the columns, it will shut the Monorail down.”

Kaempfer lobbied the advisory board to increase oversight of the TBC project, and require the company to work with the Monorail and city officials during construction to prevent damage to the train system’s columns.

“It’s extremely important to the Monorail that everyone acknowledge that this potential exists and that it needs to be appropriately addressed,” Kaempfer said.

TBC pushed back against any new restrictions, telling the board that it was already committed to protecting existing infrastructure along the Loop’s route.

“[Tunneling] noise and vibration are imperceptible at the surface. We design our process to be deep enough underground such that a person walking [at ground level] creates more vibration than our tunnel-boring machine underground,” said Jane Labanowski, TBC’s government relations executive.

At the final bell, the Winchester Town Board awarded this round to the Monorail, conditioning the Loop design’s approval on regular coordination between TBC, the Monorail and the city’s Public Works department. “That way we all have a point of reference to go back to, just in case somebody forgets or doesn’t check in with other people,” said the chairperson. “All of a sudden, someone gets to be a bad actor who doesn’t mean to be.”

TBC did not respond to requests for comment for this story.

While the Monorail and Elon Musk’s Loop don’t yet compete directly, TBC’s ultimate ambition is to expand the LVCC Loop from a campus people mover to a Vegas-wide transit system serving the airport, the Strip and beyond. 

The Monorail itself started as a short, one-mile system shuttling tourists between the MGM Grand and Bally’s Hotel, using monorail cars bought from Disney World in Florida. It now extends nearly four miles and carries up to 67,000 passengers a day during its busiest times.

GettyImages 638158464

The Las Vegas Monorail crosses over the Las Vegas Convention Center as viewed on January 4, 2017 in Las Vegas.

TBC has promised that the Loop will be able to handle up to 4,400 passengers an hour — equivalent to more than 100,000 a day — as soon as it becomes operational. Its website states that the total journey time between the farthest LVCC stations will be around one minute. This means that the Loop will need at least six 16-person vehicles operating simultaneously to hit its goal. However, a one-minute journey might not be realistic at busy times. New York and Boston subway trains regularly stop for more than 30 seconds at popular stations.

Human drivers will pilot Loop Teslas

At the Winchester meeting, Labanowski also revealed further details about the Loop’s vehicles and operations. Although TBC’s website states that the system would use autonomous vehicles, presumably using Tesla’s Autopilot technology, Labanowski said the LVCC Loop vehicles would actually also have human drivers “for additional safety.”

Loop plans submitted by TBC to Las Vegas show a modest glass structure at surface level, with elevators, escalators and stairs leading down to a mezzanine level with gates, and then down again to three platforms. With no room at the platform level for vehicles to turn around, it appears TBC’s people movers will operate in both forward and reverse.

And although TBC hopes its Loop system will eventually span the city, a TBC contractor at the Winchester meeting said that public access could be limited for now. “We will monitor how it’s open to the public based on our commitment to our trade show customers on any given day,” said Terry Miller of the Cordell Corporation, which has been awarded a $1 million contract to oversee the project. “During CES it will be a little more difficult to have the public coming in and out than it would be for a [smaller] trade show.”

The next challenge for TBC is getting all the necessary permits to excavate a shaft to deploy its tunnel-boring machine underground. Its schedule calls for construction to begin in September.

Dreading 10x engineers, virtual beings, the fate of Netflix, and Salesforce’s acquisition

The dreaded 10x, or, how to handle exceptional employees

The reality (myth?) is that there are engineers who are ten times more productive than other engineers (some would argue 100x, but okay). Jon Evans, who is CTO at HappyFunCorp, dives into the strengths and weaknesses of these vaunted people and how to manage them and their relationships with other team members.

The anti-10x squad raises many important and valid — frankly, obvious and inarguable — points. Go down that Twitter thread and you’ll find that 10x engineers are identified as: people who eschew meetings, work alone, rarely look at documentation, don’t write much themselves, are poor mentors, and view process, meetings, or training as reasons to abandon their employer. In short, they are unbelievably terrible team members.

Is software a field like the arts, or sports, in which exceptional performers can exist? Sure. Absolutely. Software is Extremistan, not Mediocristan, as Nassim Taleb puts it.

A guide to Virtual Beings and how they impact our world

If your 10x engineers are too annoying to deal with, maybe consider just getting virtual beings instead. The inaugural Virtual Beings Summit was held recently in San Francisco, a conference designed to bring together storyline editors, virtual reality engineers, influencer marketers and more to consider the future of “virtual beings.”

Hit indie game Cuphead is headed to Tesla vehicles in August

Tesla’s games library is getting bigger, and the latest announced title is probably a familiar one to gaming fans: Cuphead. This indie game was released in 2017 for Xbox One and Windows after making a big debut in 2013, attracting a lot of attention thanks to its hand-drawn, retro Disney-esque animation style.

Tesla CEO Elon Musk revealed that Cuphead would be getting a Tesla port sometime in August, replying to a post in which Tesla announced its latest addition to the in-car arcade library: Chess. The game will run at 60fps on the in-car display, Musk added, noting that while 4K isn’t supported for Tesla’s screens, the game “doesn’t need” that high resolution.

Cuphead has since been released for both macOS and Nintendo Switch, and has gained critical acclaim for its challenging gameplay in addition to its unique graphic style. The game works with one or two players (which Tesla cars also now support via gamepad controllers for some other titles) and basically involves side-scrolling run-and-gun action punctuated by frequent boss fights.

Musk continued on Twitter regarding the Cuphead port that it will use a Unity port for Tesla’s in-car OS, which is already done, and currently they’re in the process of refining the controls. A limit of available onboard storage will be solved by allowing added game storage via USB, so that Tesla owners will be able to add flash drives to hold more downloaded games.

Earlier this month, Netflix announced that it would be developing an animated series based on Cuphead, and the game has sold over 4 million copies world-wide so far. Tesla launched Tesla Arcade last month as a dedicated in-car app to host the growing collection of games it’s brought to the car – and it’s worth noting that you can only access these games while in park.

 

What lower Netflix pricing tells us about competing in India

At a conference in New Delhi early last year, Netflix CEO Reed Hastings was confronted with a question that his company has been asked many times over the years. Would he consider lowering the subscription cost in India?

It’s a tactic that most Silicon Valley companies have adapted to in the country over the years. Uber rides aren’t as costly in India as they are elsewhere. Spotify and Apple Music cost less than $2 per month to users in the country. YouTube Premium as well as subscriptions to U.S. news outlets such as WSJ and New York Times are also priced significantly lower compared to the prices they charge in their home turf.

Hastings had also come prepared: He acknowledged that the entertainment viewing industry in India is very different from other parts of the world. To be sure, much of the pay-TV in India is supported by ads and the access fee remains too low ($5). But that was not going to change how Netflix likes to roll, he said.

“We want to be sensitive to great stories and to fund those great stories by investing in local content,” he said. “So yes, our strategy is to build up the local content — and of course we have got the global content — and try to uplevel the industry,” he said, identifying movie-goers who spend about Rs 500 ($7.25) or more on tickets each month as Netflix’s potential customers.

GettyImages 992527026 1

Indian commuters walking below a poster of “Sacred Games”, an original show produced by Netflix (Image: INDRANIL MUKHERJEE/AFP/Getty Images)

Less than a year and a half later, Netflix has had a change of heart. The company today rolled out a lower-priced subscription plan in India, a first for the company. The monthly plan, which restricts usage of the service to mobile devices only, is priced at Rs 199 ($2.8) — a third of the least expensive plan in the U.S.

At a press conference in New Delhi today, Netflix executives said that the lower-priced subscription tier is aimed at expanding the reach of its service in the country. “We want to really broaden the audience for Netflix, want to make it more accessible, and we knew just how mobile-centric India has been,” said Ajay Arora, Director of Product Innovation at Netflix.

The move comes at a time when Netflix has raised its subscription prices in the U.S. by up to 18% and in the UK by up to 20%.

Netflix’s strategy shift in India illustrates a bigger challenge that Silicon Valley companies have been facing in the country for years. If you want to succeed in the country, either make most of your revenue from ads, or heavily subsidize your costs.

But whether finding users in India is a success is also debatable.