Are OTT platforms going for rate cuts in wake of data tariff hike?
In the wake of the price hike, players such as Netflix, which has the biggest subscriber base in the APAC region, have slashed subscription prices by half
The recent hike in data tariff charges may not bode well for OTT platforms like Netflix, Amazon Prime, Hotstar and the others in India. Media reports suggest that that the increase in data charges may impact the demand for these video-streaming sites in the country since they are mostly accessed on mobile phones. The tariff hike of 15-41 per cent by service providers like Airtel, Vodafone and Jio could prove to dampen the demand for streaming sites in India.
The success of OTT platforms in India was mainly attributed to the cheap data services and an English-speaking audience. But the tariff hike combined with the economic slowdown may cause consumers to tighten their purse strings when it comes to spending on streaming services.
In the wake of the price hike, players such as Netflix, which has the biggest subscriber base in the APAC region, have slashed subscription prices by half. It has introduced long-term subscription plans to lure consumers and have offered three, six, and twelve-month plans at discounts ranging from 20 per cent to 50 per cent.
Other OTT platforms like Amazon Prime, Apple TV+ and Walt Disney and Co, and Hotstar have also been offering subscription prices with discounts. However, there are no reports to confirm whether the prices have been slashed to counter the increase in data tariffs.
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