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    Bharti Airtel to offer free Netflix for limited time

    Synopsis

    Netflix services are likely to be bundled for three months into high-value home broadband packs priced at Rs 999, Rs 1,399, Rs 1,999 and Rs 2,199 per month.

    Airtel to offer free Netflix for limited time
    Jio is steadily reaching striking distance of the market leader on revenue market share (RMS).
    Bharti Airtel plans to stop rival Reliance Jio from poaching its premium data customers by offering limited period free subscription of Netflix video streaming services to its customers on its popular Infinity post-paid mobile plans from Rs 649 a month onwards, as also on its top-end home broadband packs, starting Rs 999 a month.

    “The aggressive video content bundling strategy underlines Airtel’s efforts to hold on to its high-ARPU (average revenue per user) generating customer base in both mobility and wired broadband business platforms even as Jio readies to launch its countrywide high-speed home broadband services commercially,” a foreign brokerage analyst, who did not wish to be identified, said.

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    Jio is steadily reaching striking distance of the market leader on revenue market share (RMS).

    Airtel’s RMS has risen marginally over the past four quarters -- from 30.7% in the September quarter of FY18 to 31.7% in the June quarter of FY19 – while Jio’s almost doubled from 11.6% to 22.4%, underlining the rapid pace at which the 4G entrant, with over 215 million users on its network, is gaining ground.

    The 3-month complimentary Netflix service is likely to be available on Airtel’s aggressively priced Infinity monthly post-paid packs of Rs 649, Rs 799 and Rs 999, as well as on the upper-end plans, starting from Rs 1199 a month across India, a person aware of the market leader’s plans told ET.

    Likewise, Netflix services are likely to be bundled for three months into high-value home broadband packs priced at Rs 999, Rs 1,399, Rs 1,999 and Rs 2,199 per month, the person cited above said.

    Airtel is likely to announce the details of specific post-paid mobile and home broadband plans that would qualify for the complimentary Netflix subscription in a week.

    Bharti Airtel declined to offer comment for this story.

    At present, Airtel home broadband customers on these top-end plans have Amazon video streaming services bundled in, courtesy the company’s pact with Prime Video, Amazon’s video streaming service.

    At a time when call and data tariffs have hit rock bottom – with voice largely free on most plans – after Jio’s disruptive entry, all players are trying to use content as a key differentiator to retain and attract data users. While Jio is trying to develop its own bouquet of offerings, its rivals aggregate content from third-party sources.

    On Monday, Airtel had broadened its partnership with Netflix to offer select post-paid and home broadband users a limited span free subscription of the US company's video streaming services.

    The Netflix app, which was available only on Airtel’s direct-to-home (DTH) services platform, is now being extended to its mobile services and home broadband platforms.
    ( Originally published on Aug 29, 2018 )
    The Economic Times

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