Netflix chief executive Reed Hastings said that the streaming video company had no plans to Get More Affordable prices in the hotly competitive India Marketplace and executive comments suggesting otherwise had been”misunderstood.”
Those rates are only modestly lower than that which the provider charges in the United States.
But in India,” Hastings said,”we see the typical mix across those three strategies that we see in many different nations like the U.S., which might imply that we don’t have a pricing issue. Because if it was, everyone would be about the lower price program.”
Hastings’ comments followed a Singapore event in which the company introduced 17 new first productions for Asia, such as nine for India. He said local production proved to be a key catalyst of subscribers in India and elsewhere, but he declined to give specific figures on Asia contributor amounts and growth.
Netflix launched in India two years ago and has won fans among a young, tech-savvy middle class in a country where video consumption of all kinds is soaring.
But Hastings said Netflix could still thrive amid more economical options.
“Now it’s true that Youtube is totally free, and Amazon is essentially free, and cable is very inexpensive since it’s ad-supported. To an extent that produces a consumer anticipation,” he explained. But he added that the price of Netflix in India has been”just like going to the movie theatre 2-3 tickets a month, but you get to watch a lot more.”
After Netflix’s October earnings announcement, chief product officer Greg Peters stated: “We will experiment with other pricing models, not just for India, but around the world which will allow us to broaden access by providing a pricing grade that sits under our current lowest grade.”
That was broadly known to signal that a low-price plan was coming to India. However, Hastings reported that was not the case.
“It got misunderstood as a decision that we are likely to have lower prices in India, which isn’t something we are especially contemplating,” he said.
Hastings acknowledged the limitations of the present pricing strategy in a country where per-capita income is a tenth of them in the USA.
“It’s true that if you’re trying to get to a billion families, that probably wouldn’t work,” he explained. “But if you’re focused on English-language, English-entertainment families, there is a much higher income.”
He predicted the high-end concentrate” a practical, realistic” place to start and that the company eventually expected to target a broader audience.
Netflix now has more than 130 million subscribers worldwide. Hastings has said the India marketplace could deliver the following 100 million subscribers.