Netflix has reduced its subscription prices in 116 countries following a successful strategy in India, where it lowered its subscription prices across all its plans in December 2021. In India, Netflix saw a 30% growth in customer engagement and 24% revenue growth YoY in 2022. The markets where Netflix has slashed prices contributed less than 5% to its total revenue in 2022. However, the company believes that increasing adoption in these markets will help to maximize its revenue in the long term. In Q1, Netflix added 1.75 million net new subscribers, with the Asia-Pacific region leading the growth. Netflix’s competitors in India include Zee5, MX Player, Hoichoi, Aha, and Jio Cinema. The video OTT market in India is expected to reach $12.5 billion by 2030 from about $1.5 billion in 2021, according to a report by RBSA Advisors.
Netflix co-CEO Ted Sarandos believes that in order to grow revenue and engagement in the Indian market, Netflix needs to improve its pricing strategy and provide content that resonates with Indian audiences. The success of Netflix’s price reduction strategy in India has led the company to implement similar price reductions in 116 other countries. In addition to competition from domestic and international streaming services, Netflix also faces competition from Reliance’s Jio Cinema, which plans to release a large number of movies and shows in the Indian market over the next 18-24 months. Despite these challenges, India’s video OTT market is expected to grow significantly, reaching a size of $12.5 billion by 2030, according to a report by RBSA Advisors.