reducing the price of its subscriptions in India to boost its user base. The timing was no coincidence, as rival Amazon Prime Video had previously announced an increase in its prices effective Tuesday.
Despite Netflix’s price cut and Prime Video’s hike, the former remains in a league of its own, price-wise, in India’s video streaming market.
The price of Netflix’s cheapest monthly plan, which covers phones and tablets, has been slashed 25% from Rs 199 to Rs 149.
The largest price drop is for the basic full-service plan, which comes in standard definition (480p) picture quality. It is now priced at just Rs 199 a month, a 60% cut from Rs 499.
The cost of the standard plan, which comes in high definition 1080p picture quality, has been cut from Rs 649 to Rs 499 a month.
The full-service premium plan, which offers 4K+HDR picture quality, is down from Rs 799 to Rs 649.
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Amazon Prime Video, on the other hand, is increasing its rates from today. The cost of the annual subscription plan is up 50% from Rs 999 Rs 1,499. The monthly plan, which used to cost Rs 129, will now cost Rs 179, while the cost of the quarterly plan has been raised from Rs 329 to Rs 459.
Netflix is still five times the cost
ETtech
Netflix’s cheapest plan, which is available only on mobiles and tablets, still costs Rs 1,788 a year, more than the most expensive offerings Prime Video, Disney+ Hostar and any other Indian player. Its most expensive plan on the other hand works out to a whopping Rs 7,788 a year, more than five times the Rs 1,499 that Prime Video and Disney+ Hostar charge for their top annual plans.
Disney+ Hostar, the market leader, introduced new annual plans in September. The cheapest plan costs Rs 499 a year and is for mobiles only. The Rs 899 annual plan covers any two devices, while the Rs 1,499 annual plan offers up to 4K picture quality across up to four devices.
India’s video streaming market is expected to touch $12.5 billion by 2030 from about $1.5 billion in 2021 on the back of access to better networks, digital connectivity and smartphones, said a report by RBSA Advisors in July.
The report noted that the next wave of growth in the OTT landscape will come from tier II, III and IV cities and those who speak Indian languages. Streaming platforms that cater to these audiences include Voot, ErosNow, SonyLIV, Zee5, Hoichoi, ALTBalaji, and Adda Times.
It said that the pandemic has been a game-changer for video streaming platforms, which have gained immense popularity in India since March 2020.
Massive investments made by companies in producing originals and acquiring content will help subscription video-on-demand make up 93% of total over-the-top (OTT) revenue, compared to 87% globally, increasing at a compound annual growth rate (CAGR) of 30.7% between 2019 and 2024, it said.
