Tricky math tips Indians in favour of annual over monthly OTT subscriptions

Despite American companies such as Netflix billing consumers only monthly and not annually and the model gaining wide acceptance in the West, Indian audio and video streaming platforms continue to believe in the long-term viability of annual subscriptions for value-conscious Indians while offering multiple options to secure customer interest. Monthly renewals may generate greater revenue, but subsidised annual plans attract loyal, long-term users, minimize churn, foster stronger connections with audiences, micro-target them, and personalize their offerings extensively. Monthly subscriptions seem cheaper Industry experts like Gupta emphasize that many customers feel that monthly subscriptions are better because the price is lower, making monthly renewals of OTT subscriptions more common than yearly ones. “While monthly plans may feel unfairly costly for steady users, offering a hybrid model with discounted annual bundles or flexible options like quarterly subscriptions can provide a sustainable strategy, balancing short-term growth with long-term financial stability, especially in price-sensitive markets like India," Mohanty pointed out. To balance convenience and value, OTT platforms need to strategically craft their subscription models, offering a mix of monthly and annual subscription options, along with incentives like trial periods, add-ons, and bundled services, among others," Devyani Ozarde, managing director and lead – media and entertainment, Accenture in India, said.