If we are to go by what Netflix has hinted at, the new plan could very well be priced just under the $5 price point, which would roughly translate to around Rs 300 per month or lower.
Netflix, the global streaming giant, has affirmed that it will be rolling out a more affordable membership plan for India. This was announced at the Q2 2019 earnings call, as the organization hopes to accelerate growth in India and get more subscribers on board. The date for the launch this new subscription plan is not yet confirmed, and neither are the exact specifics in terms of the cost or the content that it will allow access to; however, it is expected to be made available in this quarter itself.
“After several months of testing, we have decided to roll out a lower-priced mobile-screen plan in India to complement our current plans. We accept this plan, which will launch in Q3, will be a viable method to introduce a larger number of people in India to Netflix and to further expand our business in a market where Pay-TV ARPU is low (below $5). We will keep learning more after the launch of this plan,” said Reed Hastings, CEO, Netflix during the earnings call.
However, if we are to go by what Netflix has hinted at, the new plan could very well be priced just under the $5 price point, which would roughly translate to around Rs 300 per month or lower. Could we also see annual subscription options now?
In India, Netflix is facing competition from its likes of Hotstar which is offering Hotstar VIP at Rs 365 per year and Hotstar Premium plan priced at Rs 199 per month or Rs 999 per year, Amazon Prime Video which is priced at Rs 129 per month or Rs 999 per year for the Prime subscription that also includes other benefits, Sony Liv which charges Rs 499 per year Premium and Zee5 which costs Rs 999 per year for the All Access Pack. At present, Netflix is offering three subscription plans in India—Rs 500 (for streaming on one device), Rs 650 (for streaming on two devices) and Rs 800 ( for 4 devices simultaneously).
The earnings call recommended that Q2 2019 was not a good period for Netflix. The organization added 2.7 million new subscribers globally in the quarter ending June, which is significantly lesser than the 5 million new subscribers they had estimated. The streaming service also lost around 130,000 subscribers in the United States, maybe as a result of the increase in subscription prices before this year.
“Our missed estimate was across all regions, but slightly more so in regions with price increases. We don’t believe the competition was a factor since there wasn’t a material change in the competitive landscape during Q2, and competitive intensity and our penetration is varied across regions,” says Hastings.
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