Netflix India subscriptions are now a little cheaper as the streaming service tries to grow its user base in the face of increased competition from rivals Hotstar & Amazon Prime, both of which are priced a little lower.
Most of the plans have been reduced by Rs 50 per month, while the basic plan now costs Rs 199 per month rather than Rs 499, a considerable reduction of Rs 200. The popular plan has been cut to Rs 149 per month from Rs 199 per month, the standard plan has been decreased to Rs 499 per month from Rs 649 per month, and the premium plan has been reduced to Rs 649 per month from Rs 799 per month.
The timing of Netflix’s price cut, Dec. 14, looks to be purposeful, as it is the same day that Amazon Prime Video India raises its prices. Prime Video’s annual subscription fee has been raised by 50%, from INR999 to INR1,499. The monthly plan for Amazon Prime Video goes up from INR129 to INR179, while the quarterly plan is going up from INR329 to INR459. According to Reuters, this is the first time Netflix has reduced the price of its streaming service in India since it started in South Asian countries 5 years earlier. It made this decision because it now faces severe competition from local businesses that offer the same service.
Furthermore, according to one expert, Netflix’s decision to cut its costs results from the company’s attempts to expand outside of large areas. According to the same source, the American company must reduce costs and align prices with Mumbai’s financial capital to capture this market. This will also aid Netflix in taking on its major competitors head-on and gaining a competitive advantage.
According to Netflix, the price cut in India is the “true ‘Money Heist.” “The greatest theft in history,” the business declared in its announcement. On prime-time television, there was a bomb threat.
Furthermore, Monika Shergill, Netflix’s vice president of content, stated that by lowering prices and adding new material, Netflix hopes to establish itself as a service provider that cherishes customers and gives them their money’s worth.
Shergill told the Hindu Business Line, “India is a very important market—as Indians, we are entertainment enthusiasts.” “At Netflix, our goal is to provide the most value possible through our content and pricing. We don’t want to be known as a premium brand but rather as a brand that delivers quality storytelling as a brand and a service. We aim to be the go-to platform for storytelling and a valuable brand for individuals.”
The entertainment behemoth has failed to gain headway with India’s price-conscious consumers, representing the most lucrative international market for streaming services. According to Media Partners Asia, India will have one billion video screens by 2024 with 85 percent broadband penetration, compared to 46 million who subscribe to the Disney Hotstar platform & 19 million who subscribe to Amazon Prime Video.
Most of India’s streaming providers, like Google, Zee5, Apple TV+, Amazon Prime, and Disney, have also provided discount deals and memberships at prices substantially below those in other international markets. The latest round of pricing revisions is expected to strengthen that competition.
Conclusion:
Netflix, like its competitors, is commissioning and distributing more locally produced content in India. Already aided by growing smartphone usage in India, streaming platforms benefited from the pandemic, which kept people home for weeks and prompted movie theatres to close.
This isn’t the first time Netflix has lowered its fees in India. It cut subscription fees in half for clients who signed up for at least 3 months in 2019. However, it does not offer live sports, which are available on Amazon and Disney in India. Netflix’s two main competitors are also set to enter a competitive bidding war for the rights to broadcast the extremely popular Indian Premier League T-20 cricket event next year.
