For the first time in the country, the company reduced the subscription prices by 20-60 percent according to the needs of the customers. This has also helped Netflix to rapidly increase the number of subscribers. Netflix in the March quarter earnings report told “Customer engagement in India grew by almost 30 percent year-on-year and revenue by 24 percent. Following this success, we have reduced prices across 116 countries in the first quarter.” The countries where the company has reduced its prices accounted for less than five per cent of its total revenue in the last financial year. Netflix said that reducing subscription rates could help it grow revenue in the long term in these countries.
Netflix’s net income fell nearly 18 percent to a little over $130 million in the first quarter. This figure was over $159 million in the same period last year. However, Netflix’s revenue increased by about 3.7 percent to $816.2 million in the first quarter. It was $786.8 million in the same period last year. The paid membership of the company has increased by 4.9 percent and is 23.25 crore.
Netflix has been against advertisements on its platform for many years. However, it has launched low priced plans with advertisements. Netflix reported, “The number of customers for subscription plans with ads is higher than our initial estimate. However, we have seen a small number of customers shifting from the Standard and Premium plans.” Netflix has also taken steps to prevent practices such as password sharing. The company has also benefited from this. The number of OTT platforms like Netflix has grown exponentially in the last few years. It has also affected the film industry.
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