Netflix Will Launch Rs 250 Mobile-Only Plan In India This October; Incur Heavy Losses In US Market
World’s biggest streaming portal Netflix has officially announced that their mobile-only, cheaper plans at Rs 250 per month would roll out in the month of October this year.
But what is the reason that Netflix is slashing the price, for a dynamic market like India?
Rs 250 Mobile-Only Plan Coming Soon
In March this year, we had speculated that Netflix may launch their mobile-only plans in India, after it was found that they are testing it in some Asian countries like Malaysia.
Now, it has been confirmed that this mobile-only plan, costing Rs 250 per month will be launched in India.
During an interaction with investors, Netflix informed that these cheaper plans will be offered in India during Q3 of 2019, which is between October to December.
Netflix said, “We believe this plan … will be an effective way to introduce a larger number of people in India to Netflix and to further expand our business in a market where Pay TV ARPU is low,”
Rs 250 will be $3.63 approximately, and their mobile-only plans will be targeted for nations where the Pay TV ARPU is less than $5.
Netflix is right now the most expensive OTT or Over the Top app in India, and they are facing intense competition from apps such as Hotstar, Amazon Prime and Jio TV.
Their plans start from Rs 500 per month, whereas Amazon Prime offers their Prime Video at Rs 1000 per year, which also give users advantages while shopping online and access to Amazon Music.
However, this may not be the main reason why Netflix is launching Rs 250 plan, for India.
The reason is that they are facing defeat in their home-ground: USA.
Netflix Losing The Batter In USA
For the first time since 2011, Netflix lost their paid customers in the US.
For Q2 of 2019, Netflix lost 130,000 customers, while gained 2.7 million new users, globally, when they had projected 5 million new users.
This loss of existing customers in the US is their biggest loss in the last 8 years, and investors are worried.
CEO of Netflix, Reed Hastings, have blamed the steep price increase of Netflix in US and European markets as the primary reason for this loss.
Although new series such as Stranger Things, La Casa de Papel (Money Heist), The Crown, and Orange is the New Black have been blockbusters, but existing users in the US are leaving, and this is a trouble sign.
In order to compensate this loss, Netflix has decided to lower the barriers in emerging markets such as India, and then hope for the best.