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How Is Netflix Performing In India – Netflix, Inc. (NASDAQ:NFLX) | Seeking Alpha

While Amazon (NASDAQ:AMZN) and local player “Hotstar” have a market share of 69.4% and 5% respectively, Netflix only has a 1.4% market share, which is quite concerning. Though I believe the company’s pricing strategy is to blame for this. Netflix has the most expensive pricing strategy in India, charging at least $7.30 per month. To put this into more perspective, Amazon Prime India charges $1.90 a month, and majority of Hotstar’s streaming services are free.

The average cost of monthly TV cable subscription in India is less than $4. As a result, India is a very price-sensitive market, where online video streaming companies need to charge ultra low rates to entice consumers away from cable TV and subscribe to their service. I believe Netflix’s pricing strategy does not suit the market it is competing in. With competitors offering either free streaming or streaming at ultra cheap rates, there is little incentive for consumers to turn to Netflix from a price perspective. Neither does Netflix offer the type of additional benefits that Amazon is able to offer through its Prime subscription at only $1.90 per month. Therefore, Netflix is genuinely price uncompetitive in India. Sarandos claimed in a recent interview that Netflix would be experimenting with different price strategies to grow its market share in India and rest of Asia. Until Netflix offers more competitive pricing strategies, and we get a better idea of whether these strategies will help it grow its market share in the region, I would not recommend buying the stock.

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How Is Netflix Performing In India – Netflix, Inc. (NASDAQ:NFLX) | Seeking Alpha.