Reliance Jio, owned by the Indian conglomerate Reliance Industries, is a major player in the Indian telecommunications and digital services market. They have disrupted the industry by offering affordable high-speed internet services, leading to a significant increase in internet penetration in India.
Netflix, on the other hand, is a global streaming platform offering a wide range of movies, TV shows, and original content. It has been expanding its presence worldwide, including in India, where it faces competition from other local streaming services like Hotstar (now Disney+ Hotstar), Amazon Prime Video, and others.
As the American firm works to increase its subscriber base in the crucial Asian market, it has signed a first-ever agreement with Jio Platforms, the largest telecom company in India, to incorporate its streaming service into its two pay-per-use plans.
Netflix memberships will now be available as part of Reliance Jio Infocomm’s prepaid plans. The decision is expected to increase competition inside the Indian telecom sector and give Netflix a different source of income.
Reliance Jio on Friday announced a first-of-its-kind agreement with Netflix to provide the OTT platform’s membership combined with two of its prepaid plans in an effort to entice premium consumers.
A Netflix subscription was previously only available with a few postpaid and home broadband options from telcos, including Jio. The Jio Rs 1,099 plan, which includes 2 GB of data daily, now includes a Netflix mobile subscription worth Rs 149 per month, while the Jio Rs 1,499 plan, which includes 3G daily data, will now include a Netflix Basic subscription for Rs 199. Both of the plans are valid for 84 days.
The partnership between Netflix and Reliance marks the first time Netflix has partnered with an Indian telecommunications company to offer streaming services on prepaid plans. (A Netflix membership is also available with the carrier’s postpaid and fibre plans thanks to an existing collaboration between the two businesses. Instead of signing up for the normal monthly subscription found in most developed countries, the great majority of individuals in India top up their phones using pay-as-you-go plans.)
The firms’ growing relationship highlights the special strategy Netflix employs in India, where the average revenue per subscriber is significantly lower than in the United States and the United Kingdom. The growth occurs at the same time as Netflix has increased its subscription costs frequently in recent quarters in the US and numerous other developed economies, as well as a global crackdown on password-sharing.
Given that the firm has stopped password sharing for its accounts, Netflix’s agreement with Jio will present a chance to grow its subscriber base in the nation.
The decision made on Friday shows the intensity with which Mukesh Ambani’s Reliance Industries company is fighting to outperform rivals Bharti Airtel and Vodafone-Idea, according to Jio Platforms, India’s largest telecom with over 450 million consumers. By outbidding rivals, the business won the majority of the $19 billion 5G spectrum license in India. To draw in more customers, the company has expanded its line of handsets and most recently started offering free cricket streaming.