Netflix has reduced the subscription charge for its users in India by as much as 60 per cent in a bid to ramp up its base amid intense competition and growth prospects of the content-streaming platform in the country.
The global subscription streaming service provider has priced the entry level Mobile plan at Rs 149 per month — where the users can stream content on a smartphone or a tablet —against Rs 199 earlier.
The Basic plan, which also allows streaming in computer and TV at standard definition, has been priced at Rs 199, which earlier cost Rs 499. The Rs 499 Standard plan was earlier priced at Rs 649 and the Premium plan is now priced at Rs 649 instead of Rs 799. Existing users will get a chance to upgrade following the change in subscription charges.
Netflix’s monthly charge is still at a premium compared with Amazon Prime (Rs 179 per month to Rs 1,499 per year) and Disney+ Hotstar (Rs 499-1,499 per year).
Tough competition
The Asia-Pacific region, which includes India, has been the largest contributor to the membership growth of Netflix but the competition in the Indian market is intense.
According to research by UK based Omdia, Disney+ Hotstar and Netflix accounted for 78 per cent of the total online video subscription market revenue in India estimated at $639 million in 2020.
But there is a stark difference when it comes to market share. Disney+Hotstar had 26 million subscribers, Netflix had only 4.6 million in 2020 according to a study by Media Partners Asia. Amazon Prime Video had a base of 17 million.
The main reason for Netflix’s lower base according to market observers has been the lack of regional language TV soaps and live sports on its platform despite the premium on subscription.
TV soaps account for 36 per cent of the 205 billion minutes that users spent on OTT platforms while originals account for only 19 per cent according to a study by Red Seer in January 2021.
Figuring out
Wilmot Reed Hastings, co-founder, chairman, president and co-CEO of Netflix had informed market analysts in April 2021 at the quarterly earnings call that the global subscription streaming service is still figuring things out in India even as it has achieved success in Japan and South Korea.
From testing 48 hours of free streaming and weekly plans to more regional contents, games and now a reduction in prices, Netflix’s primary aim is to shore up its user base in the country.
While there are no official growth projections, Media Partners Asia has estimated the subscriber base of Netflix to grow to 6.1 million by 2021.
A key growth driver will be regional content and Monika Shergill, vice president, content, Netflix India while announcing the new prices alluded to some of the titles which include Minnal Murali, Decoupled, Finding Anamika, Looop Lapeta among others.
