Netflix has cut the cost of its subscriptions in India by up to 60%, as it seeks to broaden its subscriber base by bringing its prices closer to rivals like Amazon and Disney+ Hotstar.
The streaming giant revealed its slashed prices on Monday (December 13), describing it as "the real Money Heist".
The biggest cost reduction is for its basic plan, which permits streaming on any device but caps the resolution at 480p—cut by 60% to 199 rupees (US$2.62) a month.
The standard subscription, which improves the video resolution to HD (720p) and permits two simultaneous views, has been reduced 23% to 499 rupees ($6.56), while Netflix Premium, which offers four simultaneous views and streams in UltraHD (4K) video quality, is down by 19% to 649 rupees ($8.53).
Netflix's mobile-only plan, which it rolled out in India in 2019, has dropped 25% to 149 rupees ($1.96).
India was the first market in which Netflix experimented with a cheaper, mobile-only plan. At the time, the company said the plan would be an effective way to introduce a larger number of people in India to Netflix in a market where the average revenue per user for pay TV is low (below $5). It launched the plan in Malaysia, a "truly mobile-first nation", in October 2020, and rolled it out to a further 78 countries in the second-quarter of 2021, including many markets in APAC.
Netflix COO and chief product officer Greg Peters said during the Q2 investor call that the company is trying to figure out how to seek broader reach without cannibalising revenues. "Very much what we’re trying to do is, as we bring in lower price-plan offerings that decrease average revenue per member, we’re also thinking about that from the calculus of expanding the funnel in a way that delivers total net positive revenue," he said.
In India, the service is competing against Amazon Prime Video, which charges 179 rupees ($2.36) a month and 1,499 rupees annually ($19.71), and Disney+ Hotstar, which offers an annual premium plan with access to all its content in 4K at 1,499 Indian rupees ($19.76).
Netflix announced a major content investment in India in March with a slate of 40 original films and TV series. In its Q1 investor call, co-CEO Reed Hastings said it was "still figuring things out" in India "so that investment takes some guts and belief forward-looking". Chief content officer Ted Sarandos said India "is a tremendous opportunity" for the business.