The content-based application Netflix dropped its prices on Tuesday for their Indian consumers. Amid the rising in taking of content by the Indian population, the competition between Netflix and several other OTT platforms is shoulder to shoulder.
Platforms like SonyLiv, Amazon Prime, and Disney+Hotstar also emerge victorious in the market. Still, by lowering down the basic price bar with which Netflix entered the Indian market in 2016, they have gained the population’s attention.
Netflix India announces on Tuesday
Netflix has ramped up yet again its user base by dropping down the prices by 60 percent. The rising appetite for content among the populations is driving the platform to be in the race with the regular update of new and demanded content.
Earlier Netflix was the platform that provided global content to the Indian population, but with time, this notion has changed into a more organic expansion method to cover the larger audience.
A 60% price drop, says Vice President of Netflix India
The 60 percent price drop is observed in the platform’s basic plan from ₹499 to ₹199 a month.
To this huge strategy, Netflix India’s Vice President Monika Shergill says that it is a step towards letting the members and the people who will subscribe in the future come through all the content of Netflix and can play it on any portable device, which is the reason behind the small margin gap between the mobile plan and the basic plan.
The New Price Bar
Additionally, the standard and the premium plan price has also been lowered down by ₹150. Earlier, the standard plan was ₹649, and the premium plan was ₹799; now, the dropped plan cost ₹499 and ₹649.
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Introducing the New Pricing Strategy
She added, they are programming for a much larger audience who will get touched by their new set of stories, just like when they introduced the mobile plan in India to expand their programming business. Now they are ready to move ahead.
The new pricing strategy should also move together as the content team is prepared with a lineup to introduce new stories to the user base. It is the right time to launch the latest prices.
Further, while the global market was considerably stable, the Indian market showed substantial growth. The prices are not the lowest in India but are much lesser in several other small countries. The Indian market is of the utmost importance because of the rise in the content-consuming population.
Raising Content Market
Content consumption has outgrown many other industries. In the pandemic, people were eagerly consuming the content out of the OTT platforms other than Netflix like Prime, Voot, Alt Balaji, and Hotstar.
They compete well in the given environment, and business strategies are essential. Last year, Netflix gave a day free to the Indian market on just the days where the content was lined up to bait the people into purchasing the subscription, and this year they have a new strategy to lure people in.
Meanwhile, Amazon Prime has recently announced to hike their prices from this coming year by 50 per cent, and the Netflix strategy is going to cost them a lot. Netflix will earn the revenue loss incurred upon them by the subscribing customers.
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