Netflix cuts fees for all plans in India, moves to expand in country

 Flagship basic subscription reduced from Rs 499 to Rs 199 and that for premium users is cut to Rs 649.

Netflix on Tuesday cut the prices of all its four subscription plans in India, moving aggressively to expand its base in a country that is crucial for its business and still has millions of untapped users.

The entertainment streaming service slashed the price of its flagship basic plan—it allows customers access to content on anyone device including television--by 60 percent from Rs 499 to Rs 199. The mobile-only monthly plan in HD quality—an experiment the company started in July 2019—was reduced to Rs 149 from Rs 199. The plan is a hit, accounting for nearly half of Netflix’s subscriber base, according to industry assessment.

The premium plan, which allows access to four different devices at the same time, was reduced to Rs 649 (from Rs 799), and the standard plan, which allows access to two, to Rs 499 (from Rs 649).

“It’s a two-pronged offering for customers; we are reducing pricing and offering value. It also comes with a big content lineup. We have a big global slate with a big Indian slate,” said Monika Shergill, vice president for content at Netflix, referring to actors and a TV show.

Netflix is slashing prices close on the heels of rival Amazon Prime increasing its annual plan from Rs 999 to Rs 1,499. As a result, the gap between Netflix and Amazon Prime (whose monthly average payout now is Rs 125) is closing in. However, Prime comes with exclusive add-ons like free Amazon delivery and a music service.

According to Media Partners Asia’s (MPA) estimates, Netflix is far behind in terms of subscription customers worldwide: it is expected to add 5.5 million subscribers by the end of 2021, fewer than Hotstar Disney (46 million) and Amazon Prime (21.8 million).

In terms of revenues, it is top of the charts though. Based on the share of subscription revenues in 2020, Netflix controlled 38 percent, Amazon Prime 19 percent, and Disney Hotstar 21 percent of the US $ 504 million video-on-demand revenue.