India’s streaming market
The streaming market in India (INDA) has picked up pace as a large number of Indians are increasingly shifting towards online streaming services. Streaming giants like Netflix (NFLX) and Amazon (AMZN) are also trying to grab their share amid an already saturated market where local streaming players such as Hotstar, Viacom’s (VIAB) Voot, SonyLIV, and many others have dominated with regional offerings. Hotstar is owned by Star India, which has been recently acquired by Walt Disney (DIS) as part of its purchase of 21st Century Fox’s assets.
According to a January report from market intelligence firm Kalagato of India, US streaming giants Netflix and Amazon are lagging behind Hotstar in the Indian over-the-top video market. While Hotstar has a 29% market share in India, Amazon Prime Video, and Netflix have a 10% and 5% share, respectively, in the country. Voot slightly lags Netflix with a 4% market share.
Netflix’s expansion in India
The company is focusing on strengthening its footprint in the fast-growing markets of India with its blockbuster originals such as Sacred Games, global superhits such as Narcos, and others. However, it has been thwarted by rivals on pricing, as the Indian market is very price-sensitive.
Therefore, Netflix is testing a low-priced monthly subscription plan of $3.63 (or 250 rupees) for mobile devices only in India to be able to reach more mobile users and gain market share amid intense competition. Notably, the company’s new price is significantly lower than its current monthly plans in India, which range from 500 to 800 rupees. In comparison, Amazon Prime is priced at 999 rupees a year, while local rival Hotstar’s service is available at 365 rupees a year.