Netflix recently released a low-cost-plan for mobile phone subscriptions which is designed for India. Downloads will be supported through the subscription plan; TV will not be supported through the plan. Ajay Arora, product developer at Netflix, has said that India’s Netflix subscribers tend to watch the video streaming service more on mobile phones than in any other market around the world. There are 373 smart-phone users in India, a small number relative to India’s huge population, but that’s still a lot of users in absolute terms. Netflix is trying to reach a big chunk of the global market. This market is very price sensitive. Netflix currently has roughly 2 million users in India. Netflix is using local Indian programing to tap into the market.
The subscription plan costs only 199 Rupees a month. It only allows mobile users to watch content in standard definition resolution. India’s phone users spend 70 percent of their mobile data on entertainment. This shows how big India’s market is for streaming. Netflix’s competition in accessing India’s video streaming market includes companies such as Disney’s Hotstar and Amazon Prime Video. This new plan from Netflix should help them compete for this powerful and profitable video streaming market.