The online video streaming services are taking over the entertainment industry, and there has been the rise of many of them Netflix being the leader of all. But amid the high competition, Netflix is also having some issues in regaining its customers. For the past few months, the company has also been facing slower growth due to the rise in its subscription plan prices, as well as the rise of other companies like Amazon that offering fancy discounts and original content over their platform.
The company has seen the lowest growth in the past few months, and only half of the expected number of new users have subscribed to Netflix in the first quarter of this year that just ended in June.
To be the leader in the filed, the company has to take some serious steps, to begin with, reduced prices. Netflix just announced that it will be starting up a new but cheaper mobile-only streaming plan, India being the first recipient of the new plan. The company revealed the news on Wednesday, adding that India is the biggest growing market, where it will be easier to get to most of the users with lowered prices.
“After several months of testing, we’ve decided to roll out a lower-priced mobile-only plan in India to complement our existing plans. We believe this plan, which will launch in Q3, will be an effective way to introduce a larger number of people in India to Netflix and to further expand our business in a market where Pay-TV ARPU is low (below $5),” said Reed Hastings, CEO, Netflix.
According to a report, despite being the biggest population, only 2 million people are subscribed to Netflix in India. The company said that it may gain more subscribers if it reduces the subscription prices for the Indian users, The basic Netflix monthly plan starts at Rs 500 which allows the users to access Netflix on a single screen at a time. With the announcement, the company disclosed that the new plan will only work on mobile devices and will render a 480p picture quality.
While testing the new plan in March, Netflix offered the users a price as cheap as Rs 250 ($3.63) for it, but there has been no revelation on what will be the prices for the original plan. The company will be bringing the plan by the third quarter of this year in India, and later, it may also expand to other countries.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.