Netflix is all set to launch a 250 Rs smartphone-only plan in India

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In a letter to its investors, Netflix has confirmed that it will be launching a cheaper plan in Q3. This plan is currently mentioned only for mobile devices for Indian users only. The company might have plans for expansion in other countries later as well. This new plan from Netflix is supposed to compete with other rivals in the industry like Amazon Prime Video and Hotstar, which are currently offering cheaper plan rates than Netflix.

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Netflix currently is offering three monthly plans ranging between Rs. 500 and Rs. 800 in India. In the letter, Netflix said,” After several months of testing, we’ve decided to roll out a lower-priced mobile-screen plan in India to complement our existing plans. We believe this plan, which will launch in Q3, 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. We will continue to learn more after the launch of this plan.”

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Netflix has tested a mobile-first plan in various countries as well that allows the users to watch Netflix content only on one smartphone or tablet at a time. Users won’t be able to access the content on television, PC, laptop or any streaming device. There is no news regarding the pricing, but the test runs earlier indicate that the pricing might be kept at Rs. 250 per month in India.

The change in pricing strategy by Netflix could be due to the dismal earnings and subscriber growth report. The company incurred a loss of $544 million in the past three months. Netflix had a low subscriber growth of only 2.7 million new subscribers when it was expecting to gain twice as many. The new mobile-only plan and the pricing strategy might actually work in the Indian Consumer Market and help the company boost its numbers.

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By Varnit Yadav

I'm a Computer Science engineering student. Love to read, write and explore. Apart from being a nerd I'm also a fitness enthusiast.

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