Reliance Jio Introduces Netflix Subscription on Prepaid Plans, Igniting Telecom Competition and Revenue Prospects
In a strategic move that has the potential to reshape the telecom landscape and create new revenue streams, Reliance Jio Infocomm announced on Friday the inclusion of Netflix subscriptions in its prepaid plans. This bold initiative not only intensifies competition among domestic telecom giants but also provides the video-streaming titan Netflix with a fresh avenue for revenue generation.
Reliance Jio, the telecom arm of Indian magnate Mukesh Ambani’s Reliance Industries (RELI.NS), unveiled a groundbreaking offer catering to its expansive customer base of approximately 400 million prepaid users. The initiative empowers these subscribers with the option to access Netflix via two meticulously crafted packages, each extending up to a span of 84 days.
As part of this innovative partnership, one package, priced at 1,099 rupees ($13.23), extends mobile platform access to Netflix’s extensive content library. The second package, available for 1,499 rupees, offers access to a basic package designed for larger screens, revealed Jio sources.
Rival telecom giants Bharti Airtel (BRTI.NS) and Vodafone Idea (VODA.NS) have previously incorporated Netflix’s competitor, Disney+ Hotstar, into their prepaid bundled plans.
Tony Zameczkowski, Vice President of APAC Partnerships for Netflix, expressed enthusiasm for the collaboration, stating, “Partnership with Jio will give more customers access to this exciting line-up of Indian content as well as some incredible stories from around the world.”
This move by Netflix arrives amidst efforts to diversify its revenue streams and combat market saturation in the United States. The company has recently implemented measures such as password borrowing limits and an ad-supported option.
Disney+ Hotstar, which dominated India’s streaming market with a 38% viewership share between January 2022 and March 2023, is also taking steps to curtail password sharing within the country, as reported by Reuters in July.
In India, Disney, Netflix, Amazon (AMZN.O), and JioCinema are all immensely popular, with the sector projected to burgeon into a $7 billion market by 2027, according to Media Partners Asia.
Jio, known for its innovative strides, previously announced the launch of a 4G-feature phone in July, targeting users who have yet to transition to smartphones. This pioneering approach highlights Jio’s commitment to extending digital accessibility to all segments of society.
