Assignment-1: Netflix

Submitted By: Neeraj Garg, PRN: 19020841021

Netflix is a streaming service that offers a wide variety of award-winning TV shows, movies, anime,
documentaries and more – on thousands of internet-connected devices.
You can watch as much as you want, whenever you want, without a single ad – all for one low monthly price.
There's always something new to discover, and new TV shows and movies are added every week.

Netflix entered in India around 2016 when it saw it customer base nearly saturated in US and Europe. In order to
tap the customers from one of the largest populated country, Netflix has to change it pricing strategy accordingly
keeping the sentiments of the demographics and competitor’s pricing in its mind.
Major Competitors in the OTT: Amazon Prime, Hotstar, ALTBalaji etc.
Indian Population has belief of having a lot of things on their platter at the cheapest cost possible. Netflix initially
realized this and introduce much lower subscriptions plans providing the first month free subscription and after
that you have the option to choose from three-, six- and 12-month plans at discounts of up to 50%. Here it displays
both psychological pricing as well as penetration pricing.
Later on, Netflix studied the Indian customer behavior and came to understand that, subscription purchased by
single person is been shared among his friends and family members with the same login credentials. So, in order
to cater to this, Netflix came out with a Pool subscription, where a group of four consumers (mostly students)
pool in to buy the 'four devices subscription package' of Netflix for Rs 800.
Netflix rolled out a mobile-only, standard definition-only, Indian plan that costs just 199 rupees ($2.81) per
month, to complement three regular plans that cost between 499 and 799 rupees per month ($7.05 to $11.29). In
its Q3 (2019) shareholder letter, Netflix said the mobile-only plan was performing better than expected, and that
it's "continuing to test mobile-only plans in other markets.
All this said, Netflix's Indian content spend appears to be well above that of any local rival. TechCrunch reported
hearing from an industry source that "no streaming service in India is spending anything close to [Netflix's]
figure," and also quoted an unnamed exec at a rival streaming firm that Netflix's spending is "significantly higher
than what we have invested in content over the past years." Netflix has garnered appreciation for quality content
that has both global and local appeal previously unheard of on Indian TV. At the same time, the message to its
competitors is clear – this is just the beginning. Netflix is here to stay.
In India, Netflix remains a premium service due to its subscription price.