Netflix Increases Price Upto 18%, Their Biggest Hike In 21 Years – Will It Affect India?
Netflix spent $8 billion on creating new content in 2018
For the first time since 2017, world’s largest on-demand video portal Netflix has decided to increase their tariff.
Will it affect India?
Keep reading to find out more!
Netflix Price Hike By 18%: An Overview
Netflix has announced a price hike for the first time, since October, 2017.
This price hike has been focussed only for USA and none of the other countries will get impacted by this. For new users, the price hike will be applicable immediately, whereas for existing users, the price hike will gradually begin, when their existing plans expire.
There has been an increase of price from 13% to 18%, across various plans.
Netflix Price Hike: The New Plans
The most popular plan of Netflix used to cost $10.99, which has now been increased tp $12.99.
The cheapest Netflix plan used to cost $7.99, which has now been increased to $8.99.
The costliest Netflix plan was $13.99, which has now been increased to $15.99.
Stock market cheered this decision by Netflix to increase their tariff, as soon as the news broke out. In pre-market trading, the price of Netflix share increased by 5.5% to reach $351.21.
Reason For Price Hike
In their statement, Netflix hasn’t mentioned any clear-cut reason behind the increase in price, that too first time since last 15 months.
However, it is expected that Netflix will now invest more money into creating newer content, and use the funds to expand internationally. Last year, Netflix spent $8 billion on creating new content, and this year they can spend more.
Will India Be Impacted?
No, there is no news about India getting impacted due to this massive price hike.
The new, increased tariff is only applicable for USA, and new Latin American nations where USD is the main currency.
European, Australian, and Asian markets remain unaffected by this price rise of Netflix.
Besides, in India, the tariff plans of Netflix can actually come down, very soon. Last year, when Netflix’s Chief Product Officer (CPO) Gregory Peters had visited India, he had admitted that they are still not able to understand the Indian market, and experimentation is still going on.
Price cut for India was also hinted at, as right now, among all OTTs in India, Netflix is the most expensive, as their plan starts from Rs 500; whereas #1 player: Hotstar’s plans start at Rs 199, and Amazon Prime at Rs 129 per month.
We will keep you updated, as more details come in.