Netflix, a well-known OTT player in the entertainment industry, announced on Wednesday that it had reduced subscription prices in 116 countries following the success of its business strategy in India. Since 2021, when Netflix introduced a low-cost subscription package in India, the country has seen a 30% increase in consumer engagement and a 24% increase in income year over year.
The corporation reduced subscription fees by 20–60% for the first time to better suit the Indian market and increase its penetration.
“India is a prize because it has a large population of entertainment-loving individuals, and we must provide them with the product they desire. Consequently, we are focusing on innovation and improving pricing, and there is great potential for continued growth in India.
It is a very niche market in terms of (the fact that) they prefer local content, but you’re also noticing that their local content is traveling more than ever,” Ted Sarandos said on an earnings call.
Sarandos cited the success of the historical drama RRR and Sanjay Leela Bhansali’s Gangubai Kathiawadi, both of which were broadcast on the service after their theatrical debuts, as proof that the opportunity for content is still expanding alongside the platform’s ability to reach consumers.
“We can find success in India. We have a long way to go, but we continue to invest in it, and I believe we will ultimately be successful in India,” Sarandos said.
Previously priced at $199 per month, Netflix’s mobile-only plan is now priced at $149 per month. The base subscription, which grants access to all content on a single device, is now priced at $199 instead of $499.
Parts of Asia, Europe, Latin America, sub-Saharan Africa, and the Middle East have experienced price reductions.
Due to the rising cost of living, households are making cutbacks, and Netflix is facing increased competition from rival services.
Less than five percent of the over-the-top player’s total revenue for fiscal year 2022 came from countries where the price was reduced.
In the three months ending in March 2023, Netflix’s global net income decreased by nearly 18% year-over-year, decreasing to $1,305 million (approximately Rs. 107 crore). In spite of this, Netflix’s revenue increased by 3.7% between the March 2022 quarter and the current quarter, reaching $8,162 million (approximately Rs. 671 crore).