Netflix earns 20X more per user than Hotstar’s paid subscribers

Today, it goes without saying that quality has started to take centre stage for internet users while viewing content online. More and more netizens are increasingly looking for quality content and willing to pay a premium amount for the same. And premium online streaming content providers are reaping all benefits including -monetary.

US-based streaming giant Netflix, which is known to offer premium paid content product, has a higher number of paying customers and ARPU than other OTT platforms in India.

Netflix is earning over 20 times more money per user than home-grown and most popular video streaming platform Hotstar, according to a recent report by Kalagato.

As of March 2019, Netflix monthly average order value (AOV) was Rs 640 per customer, which is Rs 7,680 per year. Whereas Hotstar, in comparison, AOV for the same period stood at Rs 376 per year.

Interestingly, Hotstar witnessed a continuous rise in AOV for the last six months. The Star India-owned platform AOV witnessed 1.5X growth from Rs 249 annual billing per user to Rs 376 in the period between October 2018 to March 2019.

Meanwhile, Netflix had almost monthly AOV of Rs 655 per user in the same period.

Netflix

This is a significant development for OTT platforms especially as far as premium content viewing is concerned in India. In the last two-three years, OTT platforms have mushroomed in the country.

Though, time and again industry observers have cast aspersion on the success of the premium subscription model product for being not a mass market product.

Over the years, Netflix has been lauded for its quality and diversity of content. As per counterpoint research, Netflix India has witnessed 3X growth in 2018 as compared to the previous year. However, the conversation is predominantly limited to urban India.

The US-based streaming platform has been able to drive more subscribers on its platform with quality content and partnerships with telcos, said Aman Kumar, CBO of Kalagato.

Netflix subscriptions start from Rs 500 a month for a basic plan and go up to Rs 800 per month for a premium plan. As per the last report, Netflix is said to have around 500K paid subscribers on its platform in India. It aims to have 100 million subscribers in India. Whereas Star-owned firm Hotstar, which offers yearly subscription starting at Rs 999,  has about 7 lakh paid subscribers.

Of late, Netflix has turned into a launch pad for independent filmmakers and small production houses. In the last one and half years, Yoodlee Films has released seven movies on the US-based streaming platform.

In terms of overall reach market, Netflix has also witnessed a rise in market share reach to 10% from almost below 1% in the last year January.

In India, the OTT market is still at the nascent stage.  As per Ashocham-PwC joint study, Indian OTT market is expected to touch $823 million at CAGR of 22.6% by 2022.

Netflix earns 20X more per user than Hotstar’s paid subscribers

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