This Tuesday, streaming giant Netflix took a major decision that’s sure to change the current OTT platform playing field – a major price cut across all its subscription plans post-December 14th.
This is the first time the company has dropped prices in India since its launch back in early 2016. With a 60% drop, Netflix’s basic plan, which allows for single-device streaming, is now just Rs. 199 per month.
Both these plans don’t offer HD streaming, however. The standard plan now costs Rs. 499, while the Premium plan, offering 4k and HDR streaming, costs Rs. 649. You can find a detailed table comparing old and new prices below:
Netflix India’s VP of Content, Monika Shergill shared a quick statement on the new changes.
“As Indians,” she wrote, “we love great entertainment. Whatever your mood, tastes or plan, Netflix is now even more accessible.”
The changes will begin from your next billing cycle, if already subscribed. Since Mobile, Basic and Standard plans now have prices that equal their previous lower tiers, subscribers will also be upgraded – and sent a notification allowing them to choose a better plan than before if needed.
What Does This Mean For The Competition?
According to recent reports, Indian streaming services experienced a 30% surge in paid subscribers, largely attributed to the effects of 2020’s global pandemic.
With around 30 million subscribers, the current market share is largely split between the big three – Netflix, Disney+ Hotstar, and Amazon Prime Video. Out of a total national OTT revenue of $1.9 billion, 29% belongs to Netflix, while Disney+ Hotstar has 25%, followed by Amazon Prime with 22%.
What’s interesting is that while Netflix wins the revenue race, Disney+ Hotstar has the most subscribers – a staggering 50% of the market. Amazon Prime has 19%, while Netflix has just 5%.
Arguably, the reason behind this is simple – money. Disney+ Hotstar offers a free subscription plan, paired with a 4k-ready, Premium monthly subscription rate of around Rs. 125, billed annually. While Amazon Prime Video isn’t free, it comes bundled with the base Amazon Prime membership – which costs Rs. 179 per month billed monthly, and matches Hotstar’s rate annually.
This means that even with a price cut, Netflix’s premium services cost over 2x that of its closest competitors.
Customers, however, seem more than willing to pay a premium for Netflix’s content.
Skeptical fans have also appreciated the price cut as Amazon has just increased their price by 50% this month.
Still others have found the offer fairly weak – criticizing Netflix for offering 480p streams in 2021.
Either way, with an aggressive move on the market just as Amazon hikes their prices, Netflix India seems primed for a subscriber surge in 2022.
(Image Sources: Netflix India, Mollie Sivaram)
