Netflix, world’s one of the largest media streaming platform, is considering to experiment with lower pricing in order to increase subscribers growth in growing markets, such as India.
Based on the information shared by Greg Peters during the company’s earnings call, the company could offer a plan with lower pricing than its current basic plan, with hopes of increasing its subscribers count.
The company is also planning to expand beyond English into Hindi and other Indic and Dravidian languages, revealed Netflix CEO Reed Hastings. This will be done in order to meet the company’s long-term goal of 100 million subscribers in India.
In a response to the question about pricing, Greg Peters said:
We’ll experiment with other pricing models, not only for India, but around the world that allow us to sort of broaden access by providing a pricing tier that sits below our current lowest tier. And we’ll see how that does in terms of being able to accelerate our growth and get more access.
Along with the change in its pricing strategy in India, the company is also looking to expand its local language options in India. Reed Hastings noted that 300 million Indians have mobile phones, which are all potential customers for the streaming service.
Ted Sarandos, Netflix’s chief content officer, said that its Indian originals — the likes of Sacred Games, Ghoul, and Love Per Square Foot, has helped make Netflix “feel more local, more relevant” in the country.
Netflix has always stated that the Indian market is ‘full of potential’, and has been increasing the number of Indian originals. It has over fourteen original series on its upcoming slate from India.
Compared to other streaming service providers in India, Netflix is the most expensive service. Its pricing starts at Rs. 500 per month, while the rival Amazon is offering Prime membership at Rs. 129 per month or Rs. 999 per year, which includes Prime Video and Prime Music among other services. It competes with a plethora of media streaming services, including Eros Now, Spuul, ALT Balaji, HOOQ, Hotstar, Sony LIV, and Viu, among others.