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  • Netflix Pricing Policy and Price Discrimination

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    Sasank Aravapalli
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    Netflix offers different subscription plans in India ranging from Rs. 199 to Rs. 799 per month, with varying features like number of screens, simultaneous streams, downloads and video quality. It practices second and third-degree price discrimination based on plan chosen and customer location. In 2020, Netflix India reported revenues of Rs. 923.7 Cr but low profits of Rs. 8.92 Cr, with around 5 million subscribers paying an average of Rs. 500-600 per month.

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    The price discrimination and bundling followed by netflix

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    Netflix Pricing policy and price discrimination

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    Netflix offers different subscription plans in India ranging from Rs. 199 to Rs. 799 per month, with varying features like number of screens, simultaneous streams, downloads and video quality. It practices second and third-degree price discrimination based on plan chosen and customer location. In 2020, Netflix India reported revenues of Rs. 923.7 Cr but low profits of Rs. 8.92 Cr, with around 5 million subscribers paying an average of Rs. 500-600 per month.

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    © All Rights Reserved
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    42 views1 page

    Netflix Pricing Policy and Price Discrimination

    Uploaded by

    Sasank Aravapalli
    Netflix offers different subscription plans in India ranging from Rs. 199 to Rs. 799 per month, with varying features like number of screens, simultaneous streams, downloads and video quality. It practices second and third-degree price discrimination based on plan chosen and customer location. In 2020, Netflix India reported revenues of Rs. 923.7 Cr but low profits of Rs. 8.92 Cr, with around 5 million subscribers paying an average of Rs. 500-600 per month.

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    © All Rights Reserved
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    Netflix Pricing policy and price discrimination:

    In India, Netflix gives monthly subscriptions starting at Rs 199 for the mobile plan, while the basic
    plan comes for Rs 499, the standard plan for Rs 649, and the premium plan for Rs 799. Netflix also
    introduced a mobile+ plan for Rs 349.

    Mobile Basic Standard Premium

    Monthly cost * (Indian Rupee) ₹199 INR ₹499 INR ₹649 INR ₹799 INR

    Number of screens you can 1 1 2 4


    watch on at the same time

    Number of phones or tablets 1 1 2 4


    you can have downloads on

    Unlimited movies and TV ✓ ✓ ✓ ✓


    shows

    Watch on your mobile phone ✓ ✓ ✓ ✓


    and tablet

    Watch on your laptop and TV ✓ ✓ ✓

    HD available ✓ ✓

    Ultra HD available ✓

    Netflix practices Second-degree price discrimination in India and other countries and Third-degree
    price discrimination based on Geolocation.

    India – Netflix 2020

    Revenue: Rs 923.7 Cr

    Expenses: Rs 909.3 Cr

    Profit: Rs 8.92 Cr

    Subscribers: 5 million as of Jan 2021

    Netflix’s average revenue per user is close to Rs 500-600 per month or about Rs 6,000 a year.

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