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Netflix offers cheaper mobile-only subscription plan in India. (Image via Twitter)
Netflix Plans to Launch Cheaper Mobile-Only Plan in India
Tapping into a major market where data plan is the cheapest in the world, Netflix plans to roll out cheaper mobile-only subscription in India. The company announced on Wednesday (7/17).The new plan aims to boost the company’s subscribers as it scrambles to accelerate its global growth.
Netflix’s earnings report shows that its objective to add 5 million new subscribers for the quarter was lower than expected as it only managed to add about 2.7 million subscribers. However, focusing on reaching more users in India market will help to expand its overall subscriber base, as the entertainment business will be increasingly booming in the next 20 years.
At present, India has fewer than 2 million subscribers on Netflix but the country could emerge as a market that brings the next 100 million subscribers to the platform, Netflix chief executive Reed Hastings said.
In March, Netflix was testing a 250 rupee (US$3.63) monthly subscription for mobile devices in India. This is much cheaper compared to the current offer which priced between 500 rupees and 800 rupees per three months.
With the per capita GDP which is under US$2000, selling entertainment streaming services in India could be a challenge. The company needs to manage to keep the price offerings at a very low price—not only to attract more users but also to battle with rival products like Amazon’s Prime Video and Walt Disney-owned Hotstar which already ran their ‘cheap price’ strategy in the country.
Netflix has been investing heavily to lure its Indian users through its original series with A-list Bollywood actors, such as the ‘Delhi Crime’ and ‘Sacred Games’.
Source: https://www.cnbc.com/2019/07/18/netflix-to-roll-out-cheaper-mobile-only-plan-in-india.html
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