Netflix has been testing lower-cost subscription models across some of its major markets. It is now doing the same in India.
The problem Netflix has in India are the famous – or infamous – low costs for comprehensive DTH and cable TV packages, which tend to hover around the $3 a month level.
Additionally Netflix has some heavyweight local OTT competition in India, not least the Hotstar service as well as ALT, ZEE5 and about a dozen others.
Currently, Netflix is charged at between 500 Rupees a month (about $7.30) for its “Basic” plan which offers an SD service to a single user, a “Standard” plan at 650 Rupees and its “Premium” plan for multiple devices at 800 Rupees (about $11.65).
The new trial is focussed on mobile users and is to be pitched at a reported 250 Rupees ($3.60) which will offer Standard Definition on the dedicated device.
However, its competition will be tough. Hotstar, for example, charges 199 Rupees a month, while Amazon Prtime Video is just Rs 129 a month (and users get ‘free’ Amazon Prime deliveries). ZEE5 levies just 99 Rs a month, while ALT is even less at Rs100 for 3 months.