Online video streaming giant Amazon Prime has more subscriber base than its rival Netflix in India.
Amazon Prime has around 10 percent of market share, said IHS Markit report. Among several markets, Germany and Japan, have witnessed a surge in subscriber base.
Pricing has been the key factor for driving Amazon Prime and Prime Video in India. Amazon Prime Video’s unlimited ad-free, on-demand service comes with an annual subscription of Rs 999, against Netflix’s Rs 500 for a single month.
Compare to Amazon Prime introduced price Rs 499, Rs 999 per annum is still a significant discount, considering a service that offers more than just online video, IHS Markit spokesperson was quoted as saying in TOI report.
Meanwhile, Entrackr has sent questions to Amazon India and Netflix in this regard. They haven’t responded to the queries till the publication of this report.
One of the prime reasons for Amazon growth is said to be its push towards the generation of local content in India. 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.
The firm has also tied up with local telcos to consolidate its position in the country. Amazon has tied up rapidly with production houses such as Yash Raj Films, Dharma Productions, T-Series, Shree Venkatesh Films, Everest Entertainment, V Creations and Dream Warrior Pictures.
Last year, both US-based video streaming platforms had extended their battle to the Indian market. They made an announcement to set aside Rs 2,000 crore each for acquiring content to attract subscribers.
As per last year report, Amazon Prime Video signed up 9.5 million active subscribers since its launch in December. Whereas Netflix has around 4.2 million a little over a year after its launch in India.
In addition to Netflix, Amazon, Hotstar and ALT Balaji, Viacom 18 and Zee TV have also entered digital streaming space with Voot and OZee.