Not a long-time back, while every other major over-the-top (OTT) service provider, including Disney+ Hotstar and Amazon Prime, was increasing the price of their plans in India, Netflix surprised its users with a price cut.
This move from the company came out of desperation to retain current users and also attract some new ones. Netflix isn’t having the best time in India, and a primary reason for that is the price of the plans and the alternatives that are present today.
While users have started relying on OTT platforms for their entertainment needs, Netflix isn’t the sole player in the market anymore. For a long-time, Netflix was the only major OTT player, not only in India but across the world. YouTube was there, but it wasn’t considered a platform for premium content the way Netflix was looked at.
Amazon Prime Video, Disney+ Hotstar, Voot, ZEE5 Premium, SonyLIV, Hulu, and many more platforms are available today at a much lower price than what users will have to pay for Netflix. Further, even the other platforms are making original TV shows and movies, holding premieres for major movies and acquiring exclusive content, just like Netflix does.
Netflix Might Surprise Users With Another Price Cut
Netflix isn’t adding new users in India the way it used to. In a recently held investor call, Reed Hastings, Co-founder, President and CEO of Netflix, said it is “frustrating” to not get the estimated success in the Indian market.
India is a price-sensitive market, and Netflix is only realising that now when other players have already established a loyal customer base.
However, Netflix still has a strong brand value and some exciting TV shows and movies in its portfolio. The company might just go for another price cut to attract a larger market share. Note that this is based on my hunch, and there’s no official comment on the same from the company.
For a better market share, Netflix will have to do something extra in India if a price cut is not an option.