OTT

Netflix Applies India’s Pricing Strategy to Boost Success in 116 Additional Countries

• ByStartupStory     |    April 19, 2023

Netflix has reduced subscription rates in 116 countries, replicating the success of its strategy in India. The streaming giant had cut prices in December 2021 for all its plans, with its lowest plan now at INR 149 per month in India. As a result of this price reduction, Netflix has experienced a 30% increase in customer engagement and 24% growth in revenue year-on-year in India in 2022. This move is expected to attract more subscribers globally and boost the company’s revenue.

Netflix has reported an increase in customer engagement and revenue growth in India following a reduction in subscription prices and an improved content slate. This success has prompted the company to lower prices in an additional 116 countries in Q1, with the aim of increasing adoption and maximizing revenue in the long term. While these markets contributed less than 5% to Netflix’s total revenue in 2022, the streaming giant is optimistic about their potential for growth. In Q1, Netflix added 1.75 million net new subscribers, with the Asia-Pacific region accounting for over 80% of the growth, adding 1.46 million subscribers in the quarter.

Netflix’s co-CEO, Ted Sarandos, has stated that the company is focusing on tapping the Indian market, but acknowledges the need for better pricing and content to drive engagement and revenue growth. Netflix faces competition from several players in the Indian OTT market, including Zee5, MX Player, Hoichoi, and Aha, as well as global competitors like Amazon Prime Video and Disney+Hotstar. The recent entry of Jio Cinema, with its plans to release 100 movies and shows over the next 18-24 months, has added to Netflix’s competition in the Indian market. Despite these challenges, a report by RBSA Advisors projects significant growth for India’s video OTT market, with an expected value of $12.5 billion by 2030, fueled by factors such as better networks, digital connectivity, and increased smartphone penetration.

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