Netflix has reduced its subscription fees by up to 60 per cent as part of its two-prong strategy to make it the go-to choice for entertainment for Indians, according to Monika Shergill, Vice President, Content Netflix.
The American online streaming platform announced that the basic plan would be priced 60 per cent lower at ₹199 from ₹499. Other plans have been decreased between 18 per cent and 25 per cent. The mobile-only monthly plan in HD quality has been reduced to ₹149 from ₹199. The premium plan, which allows access to four different devices simultaneously, will now be available at ₹649 instead of ₹799, and the standard plan is now priced at ₹499 compared to ₹649 earlier.
Shergill told BusinessLine , that through the price cuts as well as a slew of new content, primarily regional and local content Netflix is gunning to become a brand that delivers a lot of value to its customers. “India is a very important market-as Indians, we are entertainment lovers. For us at Netflix, the idea is to add the highest amount of value through our content and pricing. As a brand and a service, we don’t want to be recognised as a premium brand, rather a brand that delivers premium storytelling. We want to be a value brand for people….we want to be the choice platform for storytelling,” Shergill said.
Shergill remains optimistic that with a slate of new content, global, local and regional content on the platform and the price cuts across plans, Netflix will be able to usher in new audiences to their platform. “Our core cohort with an appetite for international content is growing rapidly along with the appetite of our Indian audiences for Indian content. If you combine the two, it leads to a very potent mix,” Shergill said.
Karan Tuarani from Elara Capital said that with the majority of its audiences from the markets in the developed world, India presents to be a major growth opportunity for Netflix. “India is a big market opportunity with ample penetration opportunity in tier 2 and 3 towns, increased smartphone users and cheaper data price. This is indeed a market that will help scale up Netflix subs base over a medium to long term.”
“Indian market has also seen a huge adoption of dubbed content, which as also propelled Netflix to slash its prices,” said Tuarani.