Netflix cuts prices in India as competition with Disney, Amazon stiffens

Netflix reduced its subscription prices in India as it faces rigid competition with other popular streaming service providers - Amazon and Disney. The company revealed its plans to slash prices in the country on Tuesday, Dec. 14.

According to Reuters, since Netflix was launched in South Asian countries five years ago, this is the first time that it is cutting the prices for its streaming service in India. It made this decision as it now has fierce rivals that are providing the same service to the locals.

Moreover, an analyst said that Netflix’s move to lower its prices follows its effort to expand outside of the major cities. The same source added that to be able to seize this market the American company must cut its costs and align the prices based on the financial capital of Mumbai. This will also help Netflix in facing its big rivals head-on and gain some advantage.

Netflix said that its price slash in India is the "real 'Money Heist.'” In its announcement, the firm stated: “The greatest heist in history. A bomb threat on prime-time TV. Mumbai’s finest cops saving their city.”

The streaming giant has brought down its prices to as much as 60% which means from 499 rupees it is now down to 199 rupees or around $2.62 per month. This price is under the basic plan and the mobile is even cheaper at only 149 rupees.

Netflix is also offering the standard plan for 499 rupees per month from 649 rupees while the premium is at 649 rupees instead of the previous 799 rupees. Overall, the percentage of price cuts varies depending on the plan so the actual range is from 18% to 60%.

It was reported that Disney Plus and Hotstar is offering an annual premium subscription plan of 1,499 rupees or about $19.76 while Amazon Prime Video costs only 179 rupees or $2.36 per month. It also allows users to watch shows and movies on multiple devices. It is due to these rivals that Netflix has to do something about its pricing to win over customers.

Furthermore, Monika Shergill, content Netflix vice president, said that through the pricing reductions and addition of new content, Netflix is aiming to become a service provider that shows how it values customers and delivers their money’s worth too.

“India is a very important market-as Indians, we are entertainment lovers,” Shergill told the Hindu Business Line. “For us at Netflix, the idea is to add the highest amount of value through our content and pricing. As a brand and a service, we don’t want to be recognized as a premium brand, rather a brand that delivers premium storytelling. We want to be a value brand for people and we want to be the choice platform for storytelling.”