Netflix chief executive Reed Hastings said the streaming Movie Firm had no plans for cheaper Costs in the competitive India market and that an executive comments suggesting otherwise Was”misunderstood.”
Those rates are only modestly lower than what the provider charges in the United States.
But in India,” Hastings said,”we see the typical mix across these three plans we see in many other nations like the U.S., which might imply that we don’t have a pricing issue. Because if it was, everyone would be on the decrease price plan.”
Hastings’ remarks followed a Singapore occasion where the firm introduced 17 new original productions for Asia, including nine to India. He said local manufacturing was a key catalyst of new subscribers in India and elsewhere, but he declined to give specific figures on Asia contributor amounts and expansion.
Netflix started in India two years ago and has won fans among a young, tech-savvy middle class in a country where movie ingestion of all types is soaring. It scored a big hit in July with the launch of Sacred Games, a hard-boiled thriller built around Bollywood star Saif Ali Khan.
However, Hastings said Netflix could still thrive amid cheaper choices.
“Now it is true that Youtube is free, and Amazon is basically free, and cable is extremely inexpensive since it is ad-supported. To some degree that produces a customer expectation,” he said. But he added that the price of Netflix in India has been”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 only for India, but around the world that will enable us to broaden access by supplying a pricing grade that sits below our current lowest grade.”
That was broadly understood to indicate a low-price strategy was coming to India. However, Hastings reported that was not the situation.
“It got misunderstood decided that we are going to have lower costs 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 revenue is a tenth of the in the USA.
“It is true that if you are trying to get to a million households, that probably wouldn’t work,” he explained. “But if you’re focused on English-language, English-entertainment families, there’s a higher income.”
He called the high-end focus”a practical, realistic” spot to start and the business eventually hoped to target a broader audience.
Netflix now has more than 130 million subscribers worldwide. Hastings has stated the India market could deliver the next 100 million subscribers.