ReutersJul 18, 2019 13:18:31 IST
Netflix, Inc. said on Wednesday it would roll out a lower-priced mobile-only plan in India, tapping into a price-sensitive market where data consumption on smartphones is surging. The video streaming pioneer said in March that it was testing a Rs 250 ($3.63) monthly subscription for mobile devices in India, where data plans are among the cheapest in the world.
"We believe this plan ... 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," the company said.
Netflix's new plan is aimed at battling cheaper offerings from rivals such as Amazon.com Inc's Prime Video and Hotstar, a video streaming platform owned by Walt Disney Co's India unit.
Netflix currently offers three monthly plans in India, priced between Rs 500 and Rs 800.
In contrast, Hotstar, which also offers content from AT&T Inc's HBO and streams live sports, charges 299 rupees per month. Amazon bundles its video and music streaming services with its Prime membership.
Netflix's announcement was part of its quarterly results, in which it reported lower-than-expected subscriber additions.
India figures prominently in Netflix Chief Executive Officer Reed Hastings' global expansion plans. The company is investing heavily in creating blockbuster shows such as crime thriller "Sacred Games" and "Delhi Crime" with A-list Bollywood actors.
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