Netflix's New Foray With Jio Targets India's Prepaid Subscribers

Zinger Key Points
  • Jio, owned by Indian business tycoon Mukesh Ambani, is hoping to expand its streaming offerings.
  • Jio's expansive handset offerings and free cricket broadcasts further its allure.

Netflix Inc NFLX and India's premier telecom provider, Jio Platforms, have united in a trailblazing agreement.

The collaboration involves bundling Netflix's streaming offerings with two of Jio's prepaid plans, reflecting Netflix's aggressive strategy to augment its Indian customer base.

There will also be a mobile-exclusive Netflix subscription offered in Jio's 1,099 rupees ($13.2) plan, TechCrunch reports.

Also Read: Is This The Beginning of The End Of Traditional TV Era?

A subsequent plan priced at 1,499 rupees ($18) includes Netflix Basic. Both packages guarantee users 84 service days and offer unlimited voice calls. Furthermore, the $13.2 plan provides 2GB of daily 5G data, whereas the $18 alternative delivers 3GB daily.

This development signifies the inaugural occasion Netflix has cooperated with an Indian telecom entity to present their streaming amenity through a prepaid scheme. Reliance communicated this novelty, alluding to an existing alliance with Netflix for their postpaid and fiber propositions. Notably, the predominant method in India is the pay-as-you-go system, deviating from the routine subscription model prevalent in advanced markets.

This evolving camaraderie epitomizes Netflix's distinctive strategy in India, where the average earnings per user significantly lags behind that in regions like the U.S. and U.K. This endeavor aligns with Netflix's recent spike in subscription rates in several mature markets and its intensified combat against account sharing.

For Jio Platforms, boasting a staggering user base surpassing 450 million, this latest venture accentuates its relentless pursuit to eclipse adversaries like Bharti Airtel and Vodafone-Idea. Propelled by their acquisition of the lion's share in India's $19 billion 5G spectrum license, Jio's expansive handset offerings and free cricket broadcasts further its allure.

Jio, owned by Indian business tycoon Mukesh Ambani, wants to expand its streaming service by adding over 100 movies and TV shows. It seeks to pit Jio Cinema against major international companies like Walt Disney Co's DIS Disney+ Hotstar and Netflix in the rapidly developing Indian market.

Price Action: NFLX shares traded lower by 0.86% at $399.54 premarket on the last check Friday.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Unsplash

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