Netflix's password-sharing crackdown works in US: Will India follow suit?
Netflix's bold step to crack down on password sharing has reportedly yielded remarkable results in the United States. According to Antenna (media group), the platform gained over 100,000 daily subscribers on two days after the roll-out of new plans on May 24. While this data pertain to the US, the question remains: Will the streaming giant be able to replicate its success in India?
Why does this story matter?
In a bid to address the estimated loss of 100M households worldwide, reportedly caused by password sharing, Netflix introduced "paid sharing." Under this, US subscribers must either remove members from their accounts or pay an additional $7.99 per month. While this plan has been implemented in Canada, Spain, and New Zealand, there is no confirmed update on when it will be extended to India.
Netflix adjusted plan prices in India to grow engagement
To recall, Netflix, in 2021, introduced its lowest subscription plan at Rs. 149 per month. The reduction in prices resulted in a remarkable 30% increase in engagement and a significant 24% growth in revenue year-on-year in India, the company reportedly said in its earnings report in February 2023. Taking cues from this success, Netflix reportedly reduced prices in 116 countries during the first quarter.
What worked for Netflix in India, and what did not
According to a report by Mint, Netflix canceled several shows and made a significant reduction of around 35-40% in its Indian content budget due to the assessment that these shows wouldn't yield favorable results. Despite these developments, Netflix's film content, including RRR, has garnered an impressive over 73M hours of watch time. Therefore, desi content is generating an impressive customer engagement required by Netflix.
Will this policy fetch positive results in India?
Compared to the US, the Indian market is a price-sensitive market, and Netflix already faces stiff competition from established players. However, the Indian OTT market is expected to grow significantly from $1.5B in 2021 to $12.5B by 2030, per a report by RBSA Advisors. Therefore, Netflix's new policy is a double-edged sword, and the future result of password-sharing crackdown policy in India remains uncertain.
How JioCinema's strategic moves will impact Netflix's subscriber base?
Meanwhile, JioCinema is paving its path to success in the Indian market with its new content lineup and strategic partnerships with HBO and NBCUniversal. One of the primary factors that set the streaming service apart from competitors is its current, mostly free-of-cost offering. Besides, JioCinema has also announced an exciting slate of upcoming titles, including Dunki starring Shah Rukh Khan and Christopher Nolan's Oppenheimer.
