Netflix announces its monthly subscription costs in India by cutting down to 60% in order to pursue users amid increasing competition in the OTT industry in the nation.
The price of the streaming service's popular basic plan, which gives subscribers access to content on any device, including television, has been reduced by 60% from Rs 499 to Rs 199.
The monthly mobile-only HD quality package, which the business began, testing in July 2019, has been dropped from Rs 199 to Rs 149. According to industry estimates, the plan is a success, accounting for over half of Netflix's member base.
The premium plan, which provides simultaneous access to four devices, has been reduced to Rs 649 (from Rs 799) while the ordinary plan, which permits access to two, has been dropped to Rs 499 from Rs 649.
It's a two-pronged offer for customers; we're lowering prices while also providing value. It also comes with a lot of stuff. Monika Shergill, Netflix's vice president of content, said, "We have a big global slate with a big Indian slate," alludes to actors and a TV show.
Netflix is lowering pricing just as Amazon Prime raises its annual plan from Rs 999 to Rs 1,499 rupees. As a result, the gap between Netflix and Amazon Prime (whose average monthly payout is currently Rs 125) is narrowing. Prime, on the other hand, comes with perks like free Amazon delivery and access to a music subscription.
Netflix, according to Media Partners Asia (MPA), is well behind in terms of global subscription customers: it is predicted to attract 5.5 million users by the end of 2021, significantly fewer than Hotstar Disney (46 million) and Amazon Prime (35 million) (21.8 million)
However, in terms of revenue, it is at the top of the list. Netflix had a 38 percent share of subscription revenue in 2020, Amazon Prime had 19 percent, and Disney Hotstar had 21 percent of the US $ 504 million video on-demand revenue.
According to Shergill, the subscription video on demand (SVOD) business has a 40-million user base and is increasing at a rate of 10% to 11% each year as more internet users join in. Customers, she claims, are interested in two to three SVOD providers. The subscription VOD industry is expected to reach 88.7 million customers in 2021, according to MPA.
As data tariffs in the country have increased dramatically, competition in the video-on-demand industry has increased.
Consumption of content has increased dramatically in recent years, particularly in the wake of the epidemic. User numbers have increased significantly on OTT sites such as Netflix, Amazon Prime Video, Disney Hotstar, and Zee5. Smaller firms like Hungama and ALTBalaji are actively adding original programming to their libraries in order to tap into the Indian market.
Amazon has announced that the yearly membership fee for its Prime programme (which includes content as well as other benefits) in India will be increased by 50% to Rs 1,499. Fees are also being raised on a monthly and quarterly basis. From Rs 899 per year, Disney+Hotstar is offered.