Finally, there is good news for all the OTT subscribers in India, especially the ones who are Netflix subscribers. Netflix India has reduced the prices of its subscription plans to strengthen its user base in spite of intense competition from Amazon Prime, Disney+Hotstar, and a host of other Indian Subscription Video on Demand players (SVOD).
Designed to lure mobile content consumers, Netflix mobile plan is now price tagged with Rs 149/month, down from Rs 199/month earlier.
A significant cut is made in the Basic plan which allows users to stream content on TV as well. Netflix Basic plan is now Rs 199/month, instead of Rs 499/month.
Both Netflix Mobile and Netflix Basic allow users to stream content in 480p resolution only.
The Netflix standard plan costs Rs 499/month now, while Rs 649/month is set for the premium plan. These plans are meant to acquire home viewers who love to consume OTT content from TV and in high definition quality.
Just to put things in context, Amazon Prime’s monthly plan is Rs 129/month. Disney+Hotstar charges Rs 1,499 per annum for premium services and Rs 499 per year for Disney+Hotstar Mobile.
Netflix India calls the new plans “Happy New Prices” and they will be in effect from December 14, 2021.
Monika Shergill (Vice President Content, Netflix India), stated to ET that the price reduction is tied in with Netflix’s content strategy and the release of new content.
“Over the past three weeks, we’ve been rolling out major titles. As per the Netflix calendar, there will be big series and movies titles coming out frequently. It is the type of content that is designed for a large audience. Now that the content has been made available to this large audience, it was time to expand and appeal to a larger audience. Shergill stated that the goal is to provide entertainment and great value at affordable prices”
Netflix released two Indian original titles in November, along with action thrillers such as Red Notice, The Harder They Fall, and The Princess Switch.
Surveen Chawla and R. Madhavan’s Decoupled will be out in December.
Netflix India’s content chief stated that Netflix India had been working to create cutting-edge content during the pandemic.
According to Netflix India’s ROC filings for FY21, the company’s topline was Rs 1526.36 Crore, compared with Rs 923.33 Crore in the corresponding fiscal year.
In September, Netflix Chairman, Co-CEO, and Co-Founder Reed Hastings visited India. He stated that the company has invested nearly Rs 3,000 crore over the past two years, and plans to continue to do so in the future.
Netflix had launched 70 originals to India so far, and that another 90 were on the horizon.
According to an estimate by research firm Media Partners Asia, India is estimated to have more than 200 million SVOD subscribers by 2026. It means that 1 in 4 broadband subscribers will be subscribing for at least one OTT platform.
All the top OTT players, Netflix, Disney+Hotstar, and Amazon Prime Video, continue to invest heavily in local original programming despite capturing 75%, combined, of the OTT revenue in India.
Despite Netflix’s belief that the revised pricing is attractive enough to lure more subscribers and make subscribers of competitors jump off the ship, a debate on Netflix’s new pricing has already been triggered – Has Netflix India misjudged the Indian consumers?
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