Netflix has decided to exclude India from its recent price hike strategy, as it aims to expand its user base in this price-sensitive and potentially massive market. The move comes as Netflix has seen a steady decline in its average revenue per membership from the Asia-Pacific (APAC) region, which includes India. A year ago, this figure stood at $8.34, but by the end of September 2023, it had decreased to $7.62. Read More on BlurStory – Dead By Daylight And Naughty Bear Cross-Over For Halloween
While Netflix cracked down on password-sharing, resulting in a net addition of 8.76 million paid subscribers globally in the third quarter of 2023, the company announced price increases for its plans in the US, UK, and France. Netflix Co-CEO Ted Sarandos explained, “Starting today, we’re adjusting prices in the US, UK, and France.” The price hikes apply to the Basic and Premium plans in these countries, while the Ads and Standard plans remain unchanged.
In the most recent quarter, the net addition of paid subscribers in Netflix’s APAC market increased from 1.07 million in the previous quarter to 1.88 million. This figure marks the highest of the past four quarters.
However, India presents a unique challenge for the American streaming giant, which has referred to the market as a “big prize.” Just six months ago, Sarandos noted that the 20-60% price reduction introduced in India in December 2021, along with an improved content slate, had led to a 30% increase in user engagement year-on-year.
Netflix has been striving to make headway in the Indian market by offering mobile-only and other plans at lower price points than regular subscriptions.
Netflix’s decision to exclude India from its price hike strategy is a sign that the company is committed to growing its user base in this market. It is also a recognition that the Indian market is unique and requires a different approach to pricing.