Over-the-top (OTT) content provider Netflix on Wednesday launched a new mobile plan exclusively for the Indian market at a subscription fee of Rs 199 per month. Users opting for this plan will be able to stream all content from Netflix without advertisements on one smartphone or tablet at a time. The content will be available in standard definition (SD).
This plan is in addition to the three plans Netflix already offers Indian consumers—basic, standard and premium. Users can download content but this plan does not allow the option of casting to another device like a television via Chromecast, etc.
The company claimed that its Indian users watch more content on their mobile phones than anywhere else in the world.
“We believe this new plan will make Netflix even more accessible and better suit people who like to watch on their smartphones and tablets—both on the go and at home,” said Ajay Arora, Director, Product Innovation, Netflix.
PTI adds :
With the Rs 199 plan, Netflix hopes to further expand its business in a market where Pay TV average revenue per user (ARPU) is low (below $5).
The company has over 148 million paid memberships in over 190 countries. It doesn’t disclose country-specific subscriber numbers.
Netflix, which is witnessing sluggish growth in its home market, is betting on markets like India to drive growth.
Online content consumption in India has seen massive growth with data plans becoming more affordable. Data rates in India are among the cheapest globally.
While there is a growing trend of consuming these on-demand content on television, a significant number of people watch content on smartphones.
While Netflix plays in the premium content streaming space, it competes with the likes of Amazon Prime Video, Hotstar and even YouTube, along with other local players in the Indian market.
Amazon Prime Videos, Hotstar and Zee5 offer services at Rs 999 annually.
The competition in the video-on-demand space has intensified, especially, after the launch of Reliance Jio’s services as data tariffs have come down drastically in the country.
Players like ALTBalaji as well as vernacular platforms like Hoichoi are actively expanding their library with original programming to tap into the Indian market.
Netflix’s global paid membership grew by 2.7 million in the second quarter, less than the 5.5 million in the year-ago period and its own forecast of five million for the June 2019 quarter.
In the third quarter, Netflix said it expects to grow by 7 million paid memberships (0.8 million in the United States (US) and 6.2 million internationally) compared to an addition of 6.1 million subscribers in the year-ago period.