Netflix, the well-known entertainment OTT player in the world, announced on Wednesday that it had reduced subscription prices in 116 nations after the success of its business strategy in India. Netflix introduced a low-cost subscription package in India in 2021, and since then, the country has experienced a 30% increase in customer engagement and a 24% increase in income year over year.
For the first time, the corporation lowered subscription fees by 20–60% to better suit the Indian market and increase its penetration.
“India is a big prize because it’s an enormous population of entertainment-loving people and we have to have the product they love. So, we are doing the creative part and getting the pricing better and there’s always lots of promise to continue to grow in India. It is a very specific market in terms of (the fact that) they like local content, but also you are seeing their local content is travelling more than ever," Ted Sarandos, the co-chief executive officer said during an earnings call.
Sarandos cited the success of the historical drama RRR and Sanjay Leela Bhansali's Gangubai Kathiawadi, both of which were streamed on the service following their theatrical debuts, as evidence that the opportunity for content is still growing alongside the platform's capacity to reach consumers.
“We can do quite well in India. We are a long way from that, we are still investing in it and I think that we will ultimately do great in India," Sarandos added.
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Formerly priced at 199 per month, Netflix's mobile-only plan is now 149. The basic subscription, which allows access to all material on any one device, is now priced at 199 instead of 499 as it was previously.
Prices have been cut in parts of Asia, Europe, Latin America, sub-Saharan Africa and the Middle East.
Households are making cuts due to the rising cost of living, and Netflix is seeing more competition from competing services.
Less than 5% of the over-the-top player's total revenue for the fiscal year 2022 came from the nations where the price was cut.
In the three months that ended in March 2023, Netflix's global net income decreased by almost 18% from the same period in the prior year, falling to $1,305 million (about Rs. 107 crore). Nonetheless, Netflix's revenue increased by 3.7 per cent from the March 2022 quarter to the reported quarter, reaching $8,162 million (approximately Rs. 671 crore).
