NEW DELHI: Netflix’s mobile-only plan, which has been under test in India for a while, is now live. The plan is meant for Indian users only and costs ₹199 monthly. It allows users to watch content in standard definition (SD) resolution only and on one screen at a time. That said, it works across both mobile phones and tablets.
This is the first time Netflix has introduced such a plan and India is the first country to get it. At the moment, it is unclear whether the company is going to bring the plan to other countries.
While Netflix has been present in India for a while now, the company has faced tough competition from local players like Hotstar, Alt Balaji and even global competitor Amazon (through Prime Videos). The company has invested in developing original content for Indian viewers, but it hasn’t racked up the numbers in terms of subscriptions yet.
Unlike Hotstar, Netflix doesn’t offer a free tier to its users, except a trial period. Amazon, on the other hand, bundles Prime Video under its Amazon Prime subscription, which also includes its music streaming service and faster deliveries on its e-commerce platform. This, on paper, makes it easier for Amazon and Hotstar to acquire customers in India than Netflix.
According to a June 2019 report by PricewaterhouseCoopers (PwC), India is the tenth largest market for OTT (over-the-top) streaming in the world. The overall revenue here stands at ₹4,462 crore and subscription-based video-on-demand platforms are expected to grow at a 23.33% CAGR rate, reaching ₹10,712 crore in revenues between 2018 and 2023.
The report also stated that a total of 34 competitors exist in the market, which includes names like Netflix, Amazon Prime Video, VOOT, ZEE5, Eros Now, ALTBalaji and more.
In an earlier report by Mint, Akash Banerji, head of advertising video-on-demand business at VOOT, said that the “OTT market is clearly tilted towards advertising right now", which would make it difficult for a platform like Netflix that depends on subscriptions over advertising.
That said, the company noted that Indians spend over 70% of their mobile data on entertainment, according to a FICCI-EY report this year. So, a cheaper mobile-only plan could be a good way for Netflix to amass more paying customers from the country.
