Netflix testing long-term subscription plans in India
MUMBAI: Video streaming major Netflix is testing long-term subscription plans in India in order to build a solid subscriber base in a market where consumption of digital content is on the rise.
According to a Reuters report, Netflix India subscribers will have the option of choosing between three, six and 12-month plans. The platform is also planning to offer discounts up to 50% on long-term plans.
“We believe that our members may value the flexibility that comes from being able to pay for a few months at once. As always, this is a test and we will only introduce it more broadly if people find it useful,” a Netflix India spokeswoman said in an email.
This the second major price experimentation by California-based in the Indian market. In July, the company had launched a mobile-only plan for India priced at Rs 199 per month.
The mobile plan allows members to enjoy all of Netflix’s content—uninterrupted and without ads—in standard definition (SD) on one smartphone or tablet at a time. Apart from mobile, Netflix has three other plans namely basic, standard and premium priced at Rs 499, 649, and 799 per month respectively.
A source told Reuters that the trial three-month plans will be offered at a 20% discount to original prices, while users will get a 30% discount for six-month plans.
Netflix is extremely bullish about India and sees the potential of attracting its next 100 million subscribers from the market. On his recent India visit, Netflix Chief Executive Officer Reed Hastings said that the company will be spending about $420 million on content for India.
Netflix’s India unit has seen a 700% growth in its revenue aided by growth in the subscriber base due to investment in local content and marketing. According to Netflix India’s regulatory filing, the company reported revenues of Rs. 466.7 crore for FY19 with a net profit of Rs. 5.1 crore.
In FY18, Netflix India’s revenue and net profit stood at Rs. 58 crore with Rs. 20 lakh respectively. However, the FY18 financials is only for seven months starting September last year after the actual transfer to a local distribution entity from Singapore.