OTT Tariff War: Amazon Prime Fees Increased By 50%; Will Netflix Follow Suit?


Those who have joined Prime from their mobile operators will also be subject to the new prices.

Amazon is increasing the price of its Prime subscription in India soon.

The annual subscription will now cost Rs 1,499 instead of Rs 999, a hike of 50%.

This is bound to upset customers who were used to enjoying the multiple services offered by Amazon under one membership.

The New Rates

The quarterly membership (3-month plan) is now priced at Rs 459 instead of Rs 329.

The monthly subscription will cost Rs 179 instead of Rs 129.

Those who have joined Prime from their mobile operators will also be subject to the new prices.

Youth Prime

Youth memberships for members between 18 and 24 years currently priced at Rs 499 will go up to Rs. 749 a year.

The monthly and quarterly plan price has been raised to Rs. 89 and Rs. 229 from Rs. 64 and Rs. 164, respectively.

How It Will Work

Existing members can enjoy their plans at the current rate till it expires, after which the new prices will come into effect.

Amazon has assured that it will not charge a customer’s card for the new pricing automatically.

So customers will get an option to choose if they want to continue with the membership or leave.

When? Why?

Amazon has not revealed the exact date from when the revised rates will take effect but have only said that it will be “very soon.”

It is unclear what the reasoning behind the hikes are, but it could have to do with Prime Video enjoying high demand and popularity in India.

It is advisable for those who are not subscribed but are interested in the service to buy its plans while the rate is still unchanged. 

Is Netflix Underpriced?

Meanwhile, Netflix has increased its rates in South Africa. 

Analyst LightShed Partners’ Rich Greenfield believes that the company is “substantially underpriced versus its value to consumers today”.

The growing buzz and hype around many of its shows, notably Squid Game, has upped its value considerably.

So it is being said that they may be missing out on an opportunity to revise their pricing which, compared to the time spent on it by the average subscriber, is low. 

What About The Competition?

Others believe that given the heated competition, it is wise to have a conservative approach.

Yet, Greenfield might have a point. 

He cited data which reports that nearly half (47%) of all time spent on connected TVs in June 2021 (in the US) was between Netflix and YouTube.

The competition may be intense, but Netflix still managed to outperform most. 

They may be chipping away at market share enjoyed by the likes of Disney+ and Hulu, but Netflix still stands strong.

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