Netlflix’s challenge in India can be attributed to much higher prices for its services than that of local competitors. Its monthly subscriptions start at 500 INR ($7.31) and users are not allowed to watch on more than one screen at a time. Hotstar, a massively popular streaming service with 70% of the market, offers a VIP plan at 365 INR ($5.34) a year, making the cost of an annual Netflix subscription more than 15 times as expensive.
Netflix recognizes that its price is a major obstacle to gaining subscribers, which is why it announced at the end of July a 199 INR ($2.91) mobile-only plan that doesn’t offer HD viewing. Amazon Prime Video is another competitor in the market, and Netflix’s cheaper mobile plan is still more expensive than Prime Video's monthly 129 INR ($1.85) rate. Prime Video also offers much more local-language content.
YouTube
YouTube has inundated the Indian market, in part because it's free and ad-supported, and because it has become a regular part of people’s everyday lives. We estimate that this year, there will be 271.9 million YouTube viewers in India, which makes up a hefty 93.5% of digital video viewers in the country. By next year, that number will grow by 13.5% to 308.7 million. Growth will slow down by 2021 (10.9%), with 342.3 million viewers.