Netflix may experiment with pricing models in India

Netflix streaming revenue grew 36 percent year over year in Q3, as average paid membership increased 25 percent and ASP rose 8 percent.

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Video streaming giant Netflix is likely to do experiment with the pricing models in India and other markets around the world the company's chief product officer Greg Peters said during the earnings call on Tuesday.

Netflix may experiment with pricing models in India

 

"We'll experiment with other pricing models, not only for India but around the world that allows us to sort of broaden access by providing a pricing tier that sits below our current lowest tier," Peters said in response to a question about pricing.

He said: "And we'll see how that does in terms of being able to accelerate our growth and get more access. But even on the existing model, we feel like we have a long runway ahead of us in India."

At present Netflix is providing its services at Rs 500, for a single screen Rs 650 for HD quality and Rs 800 per month, while Amazon is offering its services at Rs 129 per month and Rs. 999 per year.

The company is planning is looking at expanding its local language options in India.

Meanwhile, its streaming revenue grew 36 percent year over year in Q3, as average paid membership increased 25 percent and ASP rose 8 percent.

For Q4, it forecast paid net additions of 7.6 million, and total net additions of 9.4 million, up 15 percent and 13 percent compared with 6.6m and 8.3m in Q4 last year.

"We're still targeting operating margin to be at the lower end of the 10 percent -11 percent range for the full year 2018. This means that in Q4 we expect operating margin will dip to 5 percent from 7.5 percent in the year-ago quarter. As we have written in previous letters, this sequential decline in operating margin in the second half of 2018 is due to the timing of content spend and a higher mix of original films in Q4'18 (film amortization is more accelerated than series amortization due to more front-loaded viewing)," the company said.

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