Netflix May Revise Price Structure In India; Wants To Beat Youtube and Hotstar!
Netflix has reported revenues of $3.91 billion across the globe.
On-demand entertainment behemoth Netflix has now set their eyes firmly on India. As per latest reports coming in, Netflix may soon revise their price structure in India.
If we believe the reports, then Netflix considers Hotstar and Youtube as their primary competitors, when it comes to India.
So, does this mean that Netflix is not concerned with Amazon Prime?
Netflix: Indian Market Is Important for Us!
While announcing their 2018 Q2 results, and answering questions, Netflix co-founder and Chief Executive Officer (CEO) Wilmot Reed Hastings has admitted that Hotstar and Youtube are their primary competitors, and that that are way behind them in India.
As per the details received, there are mainly 4 observations about India, which Netflix made:
- Pricing of services and products move differently in India, and they (Netflix) are still understanding the dynamics of the market. Netflix’s Chief Content Officer (CCO) Ted Sarandos hinted that pricing structure can be revised to target a more specific audience. He said, “The price point is mostly relevant to the value proposition, our Indian consumers finding a lot to watch on Netflix, having a great time doing it.”
- Netflix’s Chief Product Officer (CPO) Gregory Peters also confirmed this, as he said that Netflix’s pricing structure in India is right now “far from reaching a limit in terms of the addressable market given the pricing structures”
- Netflix wants to develop more regional content for the masses, and very soon, some major announcements are expected.
- Netflix is encouraged by the amazing viewership recorded for their original shows in India.
Right now, Netflix’s minimum plan starts at Rs 500/month, which can be reduced. Compared to them, Hotstar’s minimum plan starts at Rs 199 per month, and Amazon Prime, which includes Prime Video subscription starts at Rs 129/month or Rs 999 per year.
Netflix Original Shows A Big Hit!
Wilmot Reed, CEO of Netflix has said that their first-ever original series in India: Lust Stories has received tremendous response. Infact, the viewership recorded is highest, compared to any individual market, anywhere in the world.
Sacred Games, directed by Anurag Kashqap too has received amazing response.
And they are expecting the same with Ghoul, a horror series which will premier by July end.
He said, “We are really getting some nice momentum in our India growth.”
Netflix In Numbers
As per the official numbers released, Netflix added 5.2 million new subscribers during Q2 of 2018, and generated revenues of $3.91 billion in the last one year.
As per April reports, Netflix had 125 million paid subscribers, with maximum in US: 56 million.
In India, Hotstar is the #1 Over-the-top video streaming player with 75 million subscribers; followed by Voot at 15 million, Amazon Prime at 11 million and Sony’s LIV with 5 million.
As per estimates, Netflix has 5 million paid subscribers in India.
Do you think Netflix should reduce their pricing in India? Do let us know by commenting right here!
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Image: whats-on-netflix dot com
