In an attempt to get more subscribers in India, Netflix is reducing subscription prices by a whopping 60%, per Deadline. In a blog post, Monika Shergill, the Vice President of Content for Netflix India, stated that Netflix dropped the prices for all four tiers of its plan. This includes the “Basic” plan which went from approximately $6.58 (499 rupees) a month to $2.62 (199 rupees).
Meanwhile, the mobile-only plan went from $2.62 (199 rupees) a month to $1.96 (149 rupees). The”‘Standard” plan went from $8.55 (649 rupees) to $6.58 (499 rupees) while the “Premium” level (which offers the best streaming quality) went from $10.59 (799 rupees) to $8.55 (649 rupees).
You might be wondering: why such a drastic price drop? Well, you might be surprised to know that it’s not always about the money.
Netflix drops subscription prices in India
Datta Dave, the CEO of Tulsea, a Mumbai and Los Angeles-based talent agency/production company, spoke to Deadline about the unexpected price decrease.
“We have observed how subscriber numbers drive the psyche of Wall Street investors. Netflix competitors such as Disney+ Hotstar and Amazon entered the market with attractive local pricing,” Dave explained. “This move, in our view, simply reflects Netflix’s intention to expand its addressable market to drive subscription growth. The one billion person opportunity in India is very real, but it will take patience and lower ARPUs (average revenue per unit) as Indian consumers become more willing to pay for content as content becomes more ubiquitous for them.”
Along with Netflix, Disney+ Hotstar, and Amazon Prime Video are already established in the country and find themselves competing with local services which include Zee5 and Eros Now. However, those services primarily have Bollywood movies available on them. On the other hand, Netflix offers a wide variety of shows and movies, which is appealing.
With moves like this, it’s safe to assume Netflix India is about to grow its subscriber base significantly, and maybe start making new kinds of original content to appeal to India’s huge population. Stay tuned to see what comes of this monumental decision!
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