Netflix has decided to roll out an exclusive low-priced mobile-screen plan in India. It will get cheaper. Read more about the new plan of Netflix launching exclusively for India.
Netflix: The subscription-based streaming Over The Top (OTT) service provider Netflix, which provides a library of online film and TV content including its in house productions, is set to roll-out a cheaper mobile-only plan in India as it looks to lure the viewers amidst growing competition with global and local rivals like Amazon Prime Videos, Alt Balaji, ZEE5, Hotstart among others in the country.
The subscription-based online streaming service provider Netflix believes that the growth in Indian Web market is a marathon and that it is witnessing stable and steady progress in the subcontinent. The premium content platform has been testing the possibility of such a mobile-based plan for over a few months now and has decided to roll out an exclusive low-priced mobile-screen plan in India complementing its existing plan.
In a statement to PTI, Nextflix said that “The plan which will launch in Q3 of the current fiscal will be effective in introducing a large number of people in India to Netflix and we believe that it will further expand our business in a market where Pay-TV average revenue per user (ARPU) is below 5 USD and considered low.”
The online service provider has been testing a Rs 250 monthly subscription plan for mobile devices in India. The current plans of Netflix are available for Rs 500 onwards. The OTT-internet giant has over 148 million paid membership in over 190 countries. The company doesn’t disclose country-specific numbers. India has seen massive growth in online content consumption with data plan becoming more affordable. India is among the countries where data rates are cheapest.
The Chief Product Officer of Netflix, Greg Peters said, ” the company sees Indian as a potential market that gives us an opportunity to broaden the access to our service.” The fact of India emerging as a good potential market for us, motivated us to add this mobile tire in the services that we offer, said Greg Peters.
In order to improve the accessibility, we think we need to have a lower price offering, a plan that complements the existing tiering structure that we have,” he said at the company’s investor call. The executive also said that they are working on partnerships in the Indian market. “We think there are specific opportunities to improve accessibility in India via partnership available in the market,” said Greg Peters.
The Chief Content Officer of Netflix, Ted Sarandos referred growth in India as a ‘marathon’. “It has been a long time since we are in the Indian Market and we are noticing nice steady progress,” he said, adding that the company is also scaling up its library for the Indian market.
Netflix notified that its paid membership grew by as much as 2.7 million in the second quarter which was less than its 5.5 million in the growth in the year-ago period and far below its own forecast of 5 million paid membership growth for the June 2019 quarter. Netflix said it expects to grow by 7 million paid memberships (0.8 million in the US and 6.2 million internationally) in the third quarter, compared to an addition of 6.1 million subscribers in the year-ago period.
Notably, the competition in the video-on-demand space has intensified over the span of 4 to 5 years, especially after the launch of Reliance Jio’s services as data tariffs have come down drastically in the country. The online web content providing players like Yupp TV, Hungama and ALTBalaji are actively expanding their library with original programming to tap into the Indian market.