Netflix Looses Ground in India Because of Rival, Amazon Prime Video

It was just over two years ago, Netflix announced that it will expand its service globally and will become available in 130 new markets and India being a part of them. Netflix was the primary paid video streaming carrier at the time of its debut in India. The company targeted the rich elite of India first because the company wanted to grab these users first and then expand all over India. It seemed to be a perfect plan but it was all thrashed by the entry of Amazon Prime Video in India.

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Netflix founded in 1997 is one of the world’s top video streaming services and as of January 2018, they have 117.58 million paid subscribers worldwide, including 54.75 million in the United States. It allows all its users to watch content on screens ranging from their smart phones to smart televisions. It also works with other devices like PlayStation, Apple TV.

Netflix on the back foot due to price and content

Amazon Video is an Internet video on demand service that is developed, owned, and operated by Amazon. Amazon started to take over Netflix from the very beginning because of the pricing. Netflix’s primary tier — which allows 480p streaming on one device, costs ₹500 ($7.80) a month, while the two-screen HD plan costs ₹650 ($10) and the 4K package costs ₹800 ($12.50) a month. The pricing of Netflix have remained same in these two years while the pricing of Amazon Prime video is much less than Netflix. Amazon prime video’s one year subscription costs only ₹999/year to the users. So, Amazon has taken over Netflix in the case of pricing because in India where piracy is so common, only fewer prices can make you catch users for your platform.

Although, Netflix India provides streaming of popular shows like Game of Thrones, Black Mirror, Breaking Bad and Dexter but it is almost entirely different from that provided in US. This is one of the factors that have put Netflix on the back foot in India as the users compare it with the Netflix US and get disappointed when they don’t get content like that.

Amazon Prime Video, on the other hand is providing various TV shows, Kids shows and has tied up various film houses to provide the trailers of many new movies on Amazon prime video first. Also the consumers in India have very less expectations from Amazon prime video as it is basically for providing discounts and deals on online shopping and to provide single day delivery of the products. So, every customer is happy with what they are getting on Amazon prime video because it’s an advantage with great deals and single day delivery.

Amazon has invested over $2 billion in India over the last two years and this year’s Holi sale saw the purchases by maximum number of prime users.  Out of every 3 purchases, one was by Amazon prime subscriber and the number of Amazon prime subscribers is increasing day by day. So, with its strategies, Amazon prime video has made a strong place in India while because of the pricing and its content library, Netflix has almost lost its ground in India.

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Hello my name is Ronak and I have completed my graduation in Computer Science and Engg. I love working on Internet and so I had created and maintained this website. I love writing about new gadgets, latest smartphones and technological updates and I include them as an article for my website as well.

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