60% Price Cut, still untapped users!

 

60% Price cut, 

still untapped users!

Author: Garima Taneja

Netflix, a well known streaming platform, has a huge user base which has been constantly growing over years.

Netflix has been implementing a variety of initiatives to grow its user base like

•  Parental controls
• Downloadable function to watch without internet
• Device compatibility, etc.

On December 14, 2021, Netflix has decided to cut its prices for every plan including 60% price cut for the basic plan and 18-25% price cut for other plans in India.

Monika Shergill, Vice President of Content, Netflix commented, “There will be a growth and there will be tremendous profitability because we know the kind of entertainment we have programmed, will get more people on the service.”

Netflix has been facing a strong competition and slow growth rate in US that is why it has decided to expand its base overseas.

New and old prices comparison:

Plan	Old price, per month (in ₹)	New price, per month (in ₹)
Mobile	199	149
Basic	499	199
Standard	649	499
Premium	799	649

 

These affordable plans are going to help Netflix to gain a large number of subscribers in the medium to long term, thereby increasing revenue and profitability. Since Netflix has some content which is not available on any other streaming platform, Indians are already inclining towards Netflix.

Also, new Paytm policy of automatic bill payment is acting as cherry on top, allowing Indian customers to use Paytm as a mode of recurring payment for Netflix subscription. Not having Mastercard or Visa card was holding many people back from purchasing Netflix subscription.

Besides so much tactics to gain a large base, Netflix has been facing issues in gaining subscribers in India.

There has always been a cut throat competition among Disney+Hotstar, Amazon Prime video and Netflix.

According to updated data,    

• Netflix has roughly 4.4 million subscribers in India.
• Collaboration of Disney and Hotstar proved to be a great tactic making number of its paid subscribers reach 46.4 million.
• Amazon Prime has around 18 million subscribers in India.
  

Amazon Prime video, Netflix and Disney+Hotstar, each one has their own benefits.

• Prime video has vast regional content along with excellent Amazon prime membership facilities.
• Netflix, on the other hand, has the biggest catalogue of shows, documentaries and movies.
• Disney+Hotstar in connection with HBO and Fox provides a large content to watch.

It’s difficult to examine the superiority of any platform among these but Disney+Hotstar is constantly gaining popularity not only in India but every other region of world.

Disney had set a target of 90 million subscribers worldwide by 2024 and by the end 2020, they already had 94 million subscribers. In India itself, Disney has around 46.4 million subscribers right now which is a lot more than number of Netflix.

Although, in some aspects, Netflix will always remain at top.

• Netflix has a larger content library as compared to Amazon Prime video and Disney+Hotstar. This is the biggest bone of contention among these streaming platforms. 
• Netflix has better video quality than other streaming platforms.

Netflix is going to work days and nights to gain overseas popularity, it’s still going to face tough competition in Indian market.

Let’s see what this price drop policy going to contribute!