According to a report by Economic Times, Netflix is testing long term subscription plans in a bid to get more subscribers in the country. As expected, the 12-months plans will be laced with discounts to the tune of 20-50%.
Indian video streaming space is currently crowded with services like Hotstar, Amazon Prime Video, ZEE5 and ALT Balaji. All the other video platforms are relatively cheaper than Netflix and perhaps this is why Netflix is testing a long term plan with discounts in India. It is worth noting that some of the contenders like MX Player is free and works on an ad-supported model.
On a related note, Netflix chief executive Reed Hastings has announced that they are going to spend Rs 3,000 crore for content programming in India. The budget will be spread across 2019 and 2020. India is one of the fastest-growing global markets and it only makes sense for Netflix to strengthen foothold in emerging countries.
We believe that our members may value the flexibility that comes from being able to pay for a few months at once. As always, this is a test and we will only introduce it more broadly if people find it useful”- Netflix spokesperson.
As mentioned earlier, Netflix is offering originals for India. Programs like The Sacred Games have garnered rave reviews and helped the streaming service increase its visibility in the Indian market. They have been experimenting with different pricing strategies and recently launched a mobile-only plan exclusively for India.
India’s video streaming market is swelling with new subscribers. It is expected to touch $5 billion by 2023 while the paying subscriber base is likely to rise by 40-50 million. We hope that Netflix offers a long term plan with discounted rates for other markets like the U.S.[via Economic Times]