In other words: For the same money they would spend on two months of Netflix, Indian consumers could instead subscribe to a whole year of Prime Video, and get access to free shipping to boot. What's more, Amazon charges Indian customers INR 999 for a year of Amazon Prime, which includes access to Prime Video.
Priced significantly below its regular subscription plans, the new plan is meant to help the company better compete with local players like Hotstar. Following several months of testing, Netflix is getting ready to officially launch a mobile-only plan in India.
Netflix announced the step in its Q2 2019 earnings letter to investors Wednesday, writing: "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."
Wednesday's announcement of the new mobile-only plan came as the company revealed significantly lower-than expected international subscriber growth for Q2 of 2019.
Comparably high pricing has long been seen as a roadblock to success for Netflix in India, where competitors charge significantly less for their paid video services. For instance, Disney's Hotstar service only charges consumers INR 365 for a full year of paid access.
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(On Wednesday, a spokesperson declined to comment on the pricing for the new plan once it launches in Q3.) The company's regular plans begin at INR 500 ($7.20) in the country. Netflix has been testing similarly-priced mobile-only plans in other countries as well, including Malaysia. The streaming service began testing a mobile-only plan priced INR 250 (about $3.60) per month in India in March.

Speaking at TV conference and market MipTV in Cannes, France, on Monday, where she received Variety’s Achievement in International Television Award, Rohana Rozhan, group CEO and executive director of Malaysian media group Astro, emphasized that the company would play to its strengths as the market evolved.
“And we have always broken it down into three major pillars: as far as we are concerned, as I said, we are a consumer company, we are a content company, and we are about bringing the right experience and the right value proposition to each and every costumer.” “We have always seen ourselves as more of a consumer company [than a pay-TV company], and that has always been a core-strength and a core-focus of ours,” Rozhan said.
She said that what differentiates the company is that it has “a second-to-none team who are really good at executing our plans.”
Regarding local censorship, Rozhan said that they wanted a “level playing-field,” where all outlets – including online operators – were governed by the same regulations regarding permissible content.” />
This led to a greater investment in local content, and the launch of the digital service Njoi, which gives consumers free access to 29 channels. “People need to see and hear languages and people on TV that reflect the marketplace,” she said. “That widens our reach and by virtue of that, we get a bigger reach, a bigger engagement and then we become more relevant to advertisers,” she said. Astro realized that it needed local content as well to get to a higher level of penetration in the market.
Two decades after its launch, the satellite television company, which started off as a purely pay-TV operator, has extended its business into free-TV, streaming, mobile, e-commerce, e-sports and gaming, and is involved in the production of TV shows and films. Astro reaches 75% of households in Malaysia, and is now extending its footprint into other markets in South-East Asia.
“The time is right for collaboration with like-minded partners,” she said. “We are not egotistical enough to think we can do it all on our own.” The company is now looking beyond the borders of Malaysia for future growth, and it has started to produce content for neighboring countries like Singapore, Indonesia and Thailand, such as “Police Evil 2” with a partner in Indonesia.
The company launched with 23 channels, which were a mixture of Indian, Chinese and international channels. When the company launched, the handful of free-TV channels that existed in Malaysia were obliged to air 80% of their shows in the Malay language, so Astro focused on foreign shows to offer an alternative. “What Malaysians were missing at that time was choice,” Rozhan said.
The company has 5.5 million customers, of which 3.3 million are pay-TV customers. Chord-cutting is not an issue: churn for pay customers is “global best in class” at 9.6% amortization, she said.