Amazon Prime Gets More Eyeballs Than Netflix In India

It is reported that there are other geographies also where Amazon has succeeded in roping in more subscribers than its rival video streaming giant.

Competing with around 30 OTT (over-the-top) original online video and entertainment distribution platforms including Amazon Prime and Hotstar, the world’s largest online tv network Netflix is having its tough days in India.

According to a global information company IHS Markit, Amazon Prime has received more eyeballs than Netflix in India, last year, reports TOI. Amazon Prime in its short run of one year has captured around 10% of the Indian market, says the report.

Pricing has been the key factor for driving Amazon Prime and Prime Video in India, said analysts. “Initially, Amazon Prime was the same price per year (Rs 499) as the lowest tier Netflix subscription cost per month (Rs 500),” said the IHS Markit spokesperson. “Although this has now doubled to Rs 999 per year for Amazon, it is still a significant discount, considering a service that offers more than just online video.”

With time, analysts expect Amazon’s local content investments, integration and deals with local telcos and expansion of the Amazon Prime offering to be the key drivers for Amazon Prime Video’s growth.

It is expected that Amazon will become more aggressive in expanding its offering by localising content and tying up with telcos to keep the customers interested. If Amazon does go ahead with this stated approach of increasing videos in Indian languages, then Netflix will find the going tougher since it does not have anything to offer in terms of local content. There are also other operators, like Hotstar and SonyLiv, who offer many video services free, for Netflix to contend with.

For Amazon Prime Video, India is a key market and in early 2017, Amazon stated that it would invest $300 million for creating original content (in Hindi and regional languages), a segment, which analysts consider an Achilles heel in Netflix’s portfolio. Other than that, Netflix is competing with around 30 OTT (over-the-top) players in India, many of whom, including Hotstar, operate an optional free membership model.

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