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Why Netflix may launch ₹10/ movie plan?🍿
Netflix's top subscription plan at ₹649 per month.
It also offers ₹199 mobile only plan with a single screen.
Here's why Netflix may launch ₹10 per movie option ⬇️
Quick context 🗓
Netflix entered the India market in 2016 & is at 5.5 million paying customers with ₹1,569 Cr revenue in latest financial year. It's next neighbour is Hotstar, Prime Video & 100+ of smaller OTT brands.
Netflix is bullish on India 🎯
With atleast 45 million audience that falls into upper middle class & hungry for content, India could become the biggest market for Netflix after the US. It has kicked off the penetration and has somewhat struggled to monopolise the market.
So how is Netflix may be fixing this? 🤔
Before we get to the core solutions, let's understand few things about Netflix.
First, it has strong repeat purchase behaviour 💰
Once you get a Netflix subscription, most users can't go back. It offers the right content / recommendation / excellent user experience & brilliant quality dubbing. This has helped Netflix get to single digit churned subscriber percentages. (global benchmark is 2 to 3%).
Second, it understands revenue growth 📈
No wonder it has almost comparable revenues to the #1 OTT by subscriber base (Disney+Hotstar) with a 1/10th subscriber base. Note : Hotstar has 60 million subscribers and ~1600 Cr revenues. Netflix revenue is ~1550 Cr with ~5.5 million users.
This is where it gets interesting 🤯
Netflix does not have to solve for retention, it has to solve for getting more and more users to experience the product and the product (UI + content) does the job of getting the user hooked.
Now, why they might be going with ₹10 per movie plan ⬇️
With every user experiencing the trial, Netflix will solve for trial to paid conversion and keep a very close watch getting users closer to the AHA moment on the product, faster.
Why this is important? ✨
Even at GrowthX®, we realised the need to help potential members realise the aha moment even before they sign up for a bigger product offering.
GrowthX is a 1 year product but you can help a user experience it with a 4 day trial and get them to AHA moment, faster. If you struggle at growth, checkout the complete GrowthX Experience.