Netflix Inc. NFLX -2.31% is slashing its prices in India, a key market for global growth where it trails cheaper rival streaming services from Amazon. com Inc. and Walt Disney Co.
The Los Gatos, Calif., company this week said in a blog post from India executive Monika Shergill that it is cutting its basic plan in India by 60% to 199 rupees, equivalent to $2.61, a month. Netflix also lowered prices on its least expensive plan, which offers mobile-only viewing, to $1.95 monthly. Its most expensive plan has been cut to $8.51.
Netflix has continued to switch up its strategy in the South Asian nation since launching in 2016, when it targeted the country’s more affluent consumers with plans that started at $7.50 a month.
The announcement didn’t provide a reason for the latest price reduction. A Netflix spokeswoman said the company is reducing its prices so more consumers can access its material in the country. She added that the company has been investing heavily in local content in India.
The move will help make Netflix more competitive in a country where its offerings have long been pricier than other streaming platforms, analysts say. Netflix and rivals have been pulling out all the stops to provide sports content and wide ranging material in local languages as they race for dominance in the world’s biggest untapped digital market.
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Despite the price cuts, Netflix is still more expensive than competitors. Amazon Prime Video has an offering that costs $1.17 a month, and Disney+ Hotstar offers a plan for 55 cents monthly.
Netflix has some 5 million subscribers in India, according to data from consulting firm Media Partners Asia, far fewer than Amazon Prime Video’s 19 million and Disney+ Hotstar’s 46 million. The companies don’t disclose subscriber numbers by country.
Amazon and Disney+ Hotstar didn’t immediately respond to requests for comment.
Asked at a business conference in 2018 where Netflix will get new subscribers in the years to come, Chief Executive Reed Hastings said: “The next 100 million is from India.”
Netflix remains relatively niche in India compared with competing services, said Vivek Couto, executive director of Media Partners Asia.
In addition to being more expensive, Netflix lags behind competing services in terms of offering local content in India, though it has been stepping up its efforts to provide more culturally relevant material, Mr. Couto said. He added that Netflix is the top streaming service in other Asia-Pacific markets such as Australia and South Korea—home of “Squid Game,” the company’s most popular show ever—and is successful in Japan.
Netflix in India has released more than 70 movies, documentaries, shows and comedy specials, and has more in store, said the company spokeswoman. It has 219 million subscribers globally, she said.
While Netflix has been slowly reducing its prices, Amazon Prime Video and Disney+ Hotstar started with lower launch prices and have been raising them slightly, according to Media Partners Asia analysis.
Netflix is facing increasing competition in the U.S. from the likes of Amazon, Disney, AT&T Inc.’s HBOMax and others, meaning India is key given its massive consumer base and room for growth.
Write to Newley Purnell at [email protected]
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Appeared in the December 17, 2021, print edition as ‘Netflix Slashes Its Prices in India.’
