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Home business Netflix Launching Cheaper Mobile - Only Monthly Subscription Plan for India

Netflix Launching Cheaper Mobile - Only Monthly Subscription Plan for India

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Netflix Inc (NFLX.O) said on Wednesday it would roll out a lower-priced mobile-only plan in India, tapping into a price-sensitive market where data consumption on smartphones is surging. The video streaming pioneer said in March that it was testing Rs 250 ($3.63) monthly subscription for mobile devices in India, where data plans are among the cheapest in the world.

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"We believe this plan 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," the company said.

Netflix's new plan is aimed at battling cheaper offerings from rivals such as Amazon.com Inc's (AMZN.O) Prime Video and Hotstar, a video streaming platform owned by Walt Disney Co's (DIS.N) India unit.


"After several months of testing, we've decided to roll out a lower-priced mobile-screen plan in India to complement our existing plans,” Netflix said in a letter to its shareholders. “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 (below $5). We will continue to learn more after launch of this plan."


Netflix's announcement was part of its quarterly results, in which it reported lower-than-expected subscriber additions.

India figures prominently in Netflix Chief Executive Officer Reed Hastings' global expansion plans. The company is investing heavily in creating blockbuster shows such as crime thriller "Sacred Games" and "Delhi Crime" with A-list Bollywood actors.

The second season of "Sacred Games" is set to release in August.

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