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Netflix says India's mobile-only plan successful, will test it in other markets

Netflix's mobile-only subscription plan for India has been performing better than expected, asserted company's Chief Product Officer. Though, there are over a dozen other players in streaming biz, Netflix has managed to expand its subscriber base.

, ET Bureau|
Updated: Oct 17, 2019, 07.49 PM IST
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BENGALURU: Netflix Inc’s mobile-only subscription plan for India has shown better-than-expected result and the company will look at testing it in other markets, a top company executive said.

Chief product officer Gregory Peters’ comment during a third-quarter earnings conference call with analysts on Wednesday comes amid intensifying competition among streaming services.

"So, we've been very, very happy with the mobile plan. It's actually performing better than we tested. We'll look at testing that in other markets, too, because we think there are other markets which have similar conditions that make it likely that, that's going to be successful for us there as well," Peters said in the call from the US.

In July, Netflix unveiled its cheapest plan—Rs 199 a month—but only for smartphones and tablets, to expand its subscriber base in the country and to better compete with Hotstar, Jio Cinema and Amazon Prime. Netflix is hopeful its next 100 million subscribers will come from India.

Netflix said the success of mobile-only plan will allow the company to invest more in Indian content. The country is seeing a rise in streaming wars, with over a dozen players hoping to cash in on the content boom. Globally, competition among video streaming companies is intensifying as well, with the entry of Disney and Apple TV.

“Just to talk a little bit about where we are in India, I mean again, we think about revenue as a guiding principle for us. We do these different tests and try to figure out what is the right set of plans that have the right benefits, the right features that are delivered at the right price for the subscribers in any given market,” said Peters.

Peters said Netflix is going to look at other plan structures and other feature value benefits in different markets. Without sharing specifics about the new subscription plans, Peters said Netflix will respond to what consumers in those new markets want. “We'll see them as we roll out, and we'll respond to them based on what our consumers in those markets, our members to be in those markets are telling us is working or not,” he said.

Netflix is becoming more dependent on international markets from growth. Paid memberships for international markets stood at 97,714 at the end of the third quarter, up 33% from the year-ago period. However, paid memberships in the US market grew only 6% to 60,620.

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Netflix to introduce cheaper mobile-only plan for India

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