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Netflix has no plans to introduce cheaper subscription prices in India: Reed Hastings

This new information comes almost a month after reports indicated that Netflix is looking in the possibility of introducing cheaper plans in India.

  • Published: November 12, 2018 2:09 PM IST
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Video streaming giant Netflix has just confirmed that it is not working on introducing new cheaper plans for the Indian market. Chief executive for Netflix, Reed Hastings cleared the air regarding the matter indicating that reports about cheaper plans were a misunderstanding. This new information comes almost a month after reports surfaced on the internet indicating that the company is looking in the possibility to introduce cheaper plans in India to boost the number of Netflix subscribers. The report indicated that the reason behind the move was to tap the unused potential of the Indian market with “hundreds of millions of potential video customers”.

According to a report by Reuters, Hastings pointed out that three price tiers for Netflix in India are “only modestly lower” than what Netflix charges in the United States. Digging deeper into the number of users who are using the three plans, Hastings noted that the company sees “the typical mix” in terms of the number of users across the three price points. This is nothing out of the ordinary for the company and it has seen similar numbers “in many other countries like the US”. This indicates that there is no problem with the price plans.

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Hastings also stated that if there was an issue with the pricing model then the company would see an increasing number of users on the lower price plan. This information comes weeks after the company announced 17 original Netflix productions in Asia with nine of them in India.

Talking about increasing the number of subscribers in India and other markets, Hastings stated that local production was the key driver.

  • Published Date: November 12, 2018 2:09 PM IST