Amazon has unveiled a new price tier for Prime Video in India, making the on-demand video streaming service even more inexpensive as it competes with heavyweights such as Disney's Hotstar, Netflix, and Times Internet-backed MX Player in the South Asian market.
The e-commerce company is charging 599 Indian rupees, or $7.3, for a yearlong membership to Prime Video Mobile Edition, a cheap tier it debuted last year. It's the cheapest option to subscribe to Amazon's on-demand movie streaming service in the country at this pricing.
According to the firm, Prime Video Mobile Edition, which restricts viewing to mobile devices and lowers video resolution to standard definition, has received "an unbelievable reaction" from Indian consumers and is an example of a "worldwide-first innovation." It did not say how many people had signed up for the mobile edition. The mobile edition, which is now available through the Amazon Prime Video app and website, was previously marketed in conjunction with a telecom operator.
Monday's action exemplifies how streaming behemoths — all of which have recently boosted membership fees in the United States, Europe, the United Kingdom, and other developed economies — are taking a different approach in India, the world's second biggest internet market.
Late last year, Netflix reduced the cost of each monthly membership tier by at least 18% and up to 60.1% in India. Netflix's lowest subscription, Netflix Basic, which allows viewing on any device but limits quality to 480p, has been reduced to 199 Indian rupees ($2.4), down from 499 Indian rupees previously.
Disney+Hotstar, which has about 50 million members in India and Southeast Asia, provides a yearly subscription plan for 899 Indian rupees, or $11 in the South Asian market.
According to market intelligence firm Sensor Tower, Hotstar has over 161 million monthly mobile app users in India, compared to MX Player's 78 million, Prime Video's 28.1 million, and Netflix's 15.5 million. YouTube is the most popular on-demand streaming service in India, with over 520 million monthly active users.
"India is one of our fastest growing and most engaged markets globally." Our success in the country may be credited to innovations aimed at providing customers with an amazing entertainment experience," said Kelly Day, Prime Video's VP of International, in a statement.
"In fact, India is quickly becoming an innovation hotspot for Prime Video." Prime Video Mobile Edition, which began in India, is currently being pushed out throughout numerous countries in Latin America and Southeast Asia. We are sure that the new Prime Video Mobile Edition yearly subscription will help accelerate the growth of our India business and provide even more customers with access to the service's high-quality content. We hope that by launching this service, we will be able to amuse every Indian with our popular on-demand entertainment material and live sports."