Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

PRICE WAR: How Low Can Streaming Go?

December 16, 2021 By Jeremy Jones, CFA

By Proxima Studio @ Shutterstock.com

You wouldn’t guess it from your streaming charges here in America, but overseas, streaming giants are entering a price war. Netflix is cutting its prices for streaming services in India to battle for share with Amazon Prime Video and Disney. Newley Purnell reports in The Wall Street Journal:

Netflix Inc. NFLX -0.91% is slashing its prices in India, a key market for global growth where it trails cheaper rival streaming services from Amazon. com Inc. and Walt Disney Co.

The Los Gatos, Calif., company this week said in a blog post from India executive Monika Shergill that it is cutting its basic plan in India by 60% to 199 rupees, equivalent to $2.61, a month. Netflix also lowered prices on its least expensive plan, which offers mobile-only viewing, to $1.95 monthly. Its most expensive plan has been cut to $8.51.

Netflix has continued to switch up its strategy in the South Asian nation since launching in 2016, when it targeted the country’s more affluent consumers with plans that started at $7.50 a month.

The announcement didn’t provide a reason for the latest price reduction. A Netflix spokeswoman said the company is reducing its prices so more consumers can access its material in the country. She added that the company has been investing heavily in local content in India.

The move will help make Netflix more competitive in a country where its offerings have long been pricier than other streaming platforms, analysts say. Netflix and rivals have been pulling out all the stops to provide sports content and wide ranging material in local languages as they race for dominance in the world’s biggest untapped digital market.

Will a price drop make Netflix competitive with its streaming rivals in India? Join the conversation below.

Despite the price cuts, Netflix is still more expensive than competitors. Amazon Prime Video has an offering that costs $1.17 a month, and Disney+ Hotstar offers a plan for 55 cents monthly.

Netflix has some 5 million subscribers in India, according to data from consulting firm Media Partners Asia, far fewer than Amazon Prime Video’s 19 million and Disney+ Hotstar’s 46 million. The companies don’t disclose subscriber numbers by country.

Amazon and Disney+ Hotstar didn’t immediately respond to requests for comment.

Asked at a business conference in 2018 where Netflix will get new subscribers in the years to come, Chief Executive Reed Hastings said: “The next 100 million is from India.”

Netflix remains relatively niche in India compared with competing services, said Vivek Couto, executive director of Media Partners Asia.

In addition to being more expensive, Netflix lags behind competing services in terms of offering local content in India, though it has been stepping up its efforts to provide more culturally relevant material, Mr. Couto said. He added that Netflix is the top streaming service in other Asia-Pacific markets such as Australia and South Korea—home of “Squid Game,” the company’s most popular show ever—and is successful in Japan.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Imagine How Much Money is Going to Be Destroyed in the Streaming War
  • Netflix Finally Feeling the Competition
  • Local Broadcasters Hit Back at Streaming
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Is It Time to Talk About the Defects of Index Funds Now? - August 12, 2022
  • Disney Catches Netflix in Streaming Wars - August 11, 2022
  • Prices for Electric Vehicles Going UP - August 10, 2022

Search Young Research

Most Popular

  • If the Phone Doesn’t Ring…It’s Me
  • Big Corporations Making Big Investments
  • DESANTIS RESISTS: Suspends Soros-Funded Destruction of America
  • The Key Ingredient to an $8 Million Estate Is This
  • Federal Reserve Governor Signals MORE Big Rate Hikes
  • SHOCK: Home Prices FALL in San Francisco as Market Dries Up
  • Your Retirement Life: Let the Slow and Steady Be Your Way of LIFE
  • The Power of a Compound Interest Table
  • Resilient Nordic Market Spawns Fast Growing Offshoot
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • The Great Jon Rappoport on Kari Lake
  • How’s the Economy?
  • Your Survival Guy’s Favorite Number is 72: Here’s Why
  • DEMOCRATS PLAY DIRTY: Megynn Kelly Calls Bulls#$t on “Classified Documents” Story
  • WATCH: Doocy Breaks Jean-Pierre with Trump Raid Questions “No Comment”
  • BECK: The Democrats’ Dangerous FBI Raid Endgame
  • Republicans Acquiesce to Democrats’ Abuses of Power
  • The Woke Enforcers
  • BLUE STATE BLUES: There’s No Way Out of This for Democrats
  • THE NEWS? Believe Nothing, Trust Nothing, and Question Everything

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.