The streaming giant – Netflix confirmed that it would cut down its subscription fee in India. Giving a test trial in some countries, Netflix confirms that it will introduce a cheaper plan that will let users stream content only in mobile devices.
The company said that lowering the subscription plan, it would easily reach users in India and help expand its user base across the country. The new plan might be available in the third quarter of this year. Currently, Netflix has about 2M subscribers in India, missing on customer growth that was expected in the company’s forecast.
would 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 (average revenue per user) is low (below $5) – Netflix
Netflix started to test its lower-price subscription plans in India and other markets in Asia, and during this period, it charged its users as little as $4. While users get an annual subscription at $14 on Amazon and a similar subscription fee for Disney’s Hotstar, it does Netflix an expensive service in this cost effective-market.
The company has not yet specified the amount that it intends to charge as its cheaper subscription plan.