Netflix’s new cheap plan could be big trouble for Amazon prime and Hotstar

Netflix is the most popular OTT platform on this planet. However, Netflix has been struggling to maintain its large userbase recently. Both, Number of subscribers and revenue have dropped for them in the last couple of months.

Netflix has revealed that they lost almost 200,000 subscribers since the beginning of 2022. They most likely gonna lose more subscribers due to the availability of lots of new OTT platforms with cheaper subscription prices. To tackle this issue, Netflix has already started charging on password sharing and now they are working on something new called an Ad-supported Plan.

Netflix Ad-Supported Plan

So, What exactly is Netflix’s Ad-supported plan? As the name already suggests, it’s a streaming plan with advertisements. There will be ads at the start and during the streaming of the movies and TV shows. Of course, The price for this plan will be cheaper than the regular Netflix plan as compensation for the advertisement.

Netflix has been toying around with the idea of the ad-supported plan for a while now but never really launched it. Now due to the decline in the number of users, an Ad-support plan is inevitable.

What does this mean for other OTT platforms like Hotstar and Amazon Prime?

While Netflix was losing users, Hotstar was gaining more users. As per the reports, Hotstar has gained 79,00,000 new users. Some of you might already know that Hotstar already has a subscription plan with ads. Both, The VIP and Super plans come with an advertisement, you need to get Premium to get rid of ads, which is much more expensive than the other two plans.

Currently, Netflix’s cheapest basic plan cost Rs. 199 in India, $9.99 in the USA, and £ 6.99 in the UK. You will have access to Netflix at a much cheaper price when the Ad-support plan comes into effect. It will still be expensive compared to Hotstar, However, it has a much wider library of quality content.

Amazon prime already had a lot of competition from Hotstar due to cheaper subscription prices. Now that Netflix is also planning to reduce the subscription price, Amazon is most likely to get a big blow to its userbase.

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