In a bid to compete with Amazon Prime Video and Disney+, Netflix has slashed its prices across all plans in India. This comes not long after the company introduced a cheap mobile-only plan.
Netflix's Basic plan now costs ₹199 a month ($2.62), down 60% from its previous price. Unlike the Mobile plan, the Basic plan allows you to stream Netflix on any device.
Other monthly plans, including Mobile, Standard and Premium, have also received a price cut and now cost ₹149 ($1.96), ₹499 ($6.56) and ₹649 ($8.53), respectively.
Why Is Netflix Reducing Its Prices in India?
As reported by CNBC in 2018, Netflix believed it could gain 100 million subscribers in India alone. However, the streaming giant has struggled to gain traction in the country, largely due to its pricing structure.
While Netflix may have more premium content, its competitors in the country, Disney+ Hotstar and Amazon Prime Video, offer better value for money.
Hotstar’s popularity is largely thanks to its rights to stream Indian Premium League (IPL). It also has global broadcasting rights for India senior and domestic cricket matches, among other sporting events, and features the entire Disney catalog. The most expensive Disney+ Hotstar plan costs ₹1,499 ($19.70) a year.
On the other hand, with its Prime subscription, Amazon offers access to Prime Video, Prime Music, free and fast delivery for its ecommerce service, and more. It also has an extensive collection of Indian movies and exclusive TV shows. All these perks will set you back ₹1,499 ($19.70) a year.
Netflix, however, has failed to take note of its rivals. With its relatively small library in India compared to what's available in the US, and awful pricing strategy in a price-sensitive market, it has botched its chances of gaining traction into the country’s fast-growing digital space.
With the new pricing strategy, the company plans to reach a larger audience and close the price gap between its rivals. As announced on the Netflix Newsroom, the new plans will go into effect beginning December 14, 2021.
While the Basic plan still only supports one device at a time and a maximum of 480p streaming, its availability on all devices, including TV and desktop, will make it an enticing option for many.
Will Netflix's New Strategy in India Pay Off?
Since its launch in 2016, Netflix has been a premium offering in India. It only has around five million customers, compared to Hotstar's 46 million and Amazon's 19 million. Suffice it to say, the company's performance has been underwhelming in a highly competitive market.
With a reduced cost for the Basic plan and focus on more regional content, Netflix hopes to narrow the gap between its competitors and scale up its subscriber base.