Netflix

Crushes Disney in a Fast-Growing Market!

  Netflix Crushes Disney in a Fast-Growing Market! Netflix's (NASDAQ: NFLX) premium pricing strategy has begun to bear fruit. Although 5 years have passed since the company entered the Indian market, it is still trying to break the market with various strategies. London-based consulting firm Omdia reported that Netflix and Disney's (NYSE: DIS) Disney + Hotstar streaming platform accounted for 78 % of video streaming revenue of $ 639 million in India in 2020. Although the report does not indicate how much Netflix holds in this market, it shows that the company has grown. Let's see how this growth happens. -Netflix's premium pricing strategy pays off Omdia reports that Netflix and Disney + Hotstar accounted for half of video streaming subscribers in India last year. Disney + Hotstar had 8 million subscribers in India in 2019. The company reached a subscriber base of 25,6 million, tripling this number in 2020 with subscription and annual payment facilities. However, paid subscriber enrollment was determined to increase during the Indian League ARPU period and showed a definite decrease at the end of the league. The cheapest Netflix plan is a mobile-only plan that allows streaming on smartphones or tablets in a standard definition format. This subscription is not open to sharing. Netflix does not have annual plans and the company does not offer any regular free access. Netflix clearly generates more revenue per user per month than Disney. However, Netflix's ARPU in India is estimated at $ 5 a month. This means that the company's real India revenue last year could be close to double Disney's earnings, assuming it came from 4,6 million paid subscribers. So, according to Omdia's estimate, there is a strong possibility that Netflix took the lion's share of its streaming revenue in India last year.

Netflix's (NASDAQ: NFLX) premium pricing strategy has begun to bear fruit.

-The road ahead looks bright Good news for Netflix that its mobile-only plan seems to be a hit among Indian consumers. The company's revenue in India in fiscal 2020 reportedly doubled from the previous year, following the launch of the mobile-only plan in mid-2019. This is not surprising as Omdia estimates that 82% of users in India post videos on their smartphones. Netflix now aims to provide a better experience to its mobile customers through its "Mobil +" plan, which offers high definition streaming. This indicates that the company wants to maintain additional spending and increase its ARPU. According to Media Partners Asia, it is said that there will be a big opportunity for Netflix as the online video streaming market in India is expected to reach $ 4.5 billion by 2025. As most of the content consumption is expected to occur on this platform, mobile devices are likely to make up a significant portion of this pie. Netflix seems poised to create a bigger trough in India's fast-growing streaming market, where the company is aggressively investing in content and trying smart ways to gain more customers. Netflix Crushes Disney in a Fast-Growing Market!  

Source: The Motley Fool

 

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