As part of my final assignment for The innovation in a digital world The goal: Developing the elements of a potential new business model Identifying the sources of digital value or disruption of the new business I chose NETFLIX as a platform for my new digital value concept, My aim was to look for an opportunity to create a new revenue stream concept

1. ​NETFLIX INDIA
The goal
Developing the elements of a potential
new business model
Identifying the sources of digital value or
disruption of the new business
This assignment is composed of three elements:
1. Analyze an existing business model: a specific company or industry, using just a business model
canvas.
2. Create a platform based business model canvas ​highlighting just the proposed changes​ to the original
business model in a way that adds:
a) Network Effects
b) Efficiency or productivity gains
c) A new value proposition (and the effects of those changes on the rest of the Canvas)
d) New segments of customers
e) A new monetization strategy
f) Better customer experience
​ Abhishek Semwal
IMBA J1 2020

2. ​NETFLIX INDIA
​ Abhishek Semwal
IMBA J1 2020

3. ​NETFLIX INDIA
​ Abhishek Semwal
IMBA J1 2020

4. ​NETFLIX INDIA
INTRODUCTION : ​ India’s video streaming industry is all set to grow at a CAGR of 21.82% to
reach Rs. 11,977 crore by 2023. According to a report by global accounting firm ​ (PwC)​, the
over-the-top (OTT) video industry will record the highest growth rate among all segments and drive
evolution over the next four years in the overall media and entertainment industry in the count​ry
(Source : Livemint)
Propelled by rising smartphone penetration, the launch of 4G networks and increasing consumer
wealth, the Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$
38.5 billion in 2017 Online retail sales in India are expected to grow by 31 per cent to touch US$
32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall (Source : IBEF.com)
BUSINESS CANVAS MODEL - NETFLIX
NETFLIX is the OTT (over the top platform). The company's primary revenue comes from
subscription based streaming services which offer online streaming of movies & in-house
productions. Netflix recommends content based on user behaviour or choices on the app.
Value ​: Users can access the movies or television series without any advertisements. Also Choices
of Subtitles & regional audio version availability appeals to diverse culture.Netflix generally partners
with Smartphones, Smart TV & Telecom providers for pre installed application on devices. Netflix
also streams third party content.
PROBLEM STATEMENT :
Rahul is a big fan of the Netflix series, he binged watch the new series “War “, & follows an online
group where they discuss the fan theories. He was fascinated by the cool trendy jacket the main
character (played by Hrithik Roshan) wears during a high octane chase scene. Rahul wants to get
his hand on the jacket but he does not know where to find it. He started searching on google,
though he found some websites which sell such trendy jackets but Rahul is not sure of the quality
& most of the accessories look like a cheap copy.
NEW BUSINESS CANVAS MODEL
Opportunity​:
Online streaming platform intersect with E-Commerce platform in order to leverage its content &
celebrities quotient to market & sell fashion & accessories directly to the subscribers
Customer Segment & why did I choose NETFLIX to target it ?
● NETFLIX is competing with more than 50 OTP platforms including AMAZON PRIME &
HOTSTAR (DISNEY).NETFLIX also has the most expensive monthly subscriptions plan.
But what drives its sales is its original content that appeals to Indian audiences.
● Hence this niche 2 Million Indian users who are devoted fans of the original series produced
by NETFLIX & ready to shell expensive subscription plans is my target customer.
● Most of the users consume entertainment on smartphones, they also have access to
flipkart, snapdeal, paytm app, which would be useful for switching
​ Abhishek Semwal
IMBA J1 2020

5. ​NETFLIX INDIA
Value Proposition for the Customer, Netflix & E commerce
● Netflix series like Sacred Games, Bard of Blood, House of Cards, Narcos have cult
following among Indian audiences.
● A market place which offers dedicated accessories from the popular series is either missing
or is highly fragmented
● Currently fans need to independently search for the retailers & deal with cheap copycats.
● My integrated platform will help fans to get access to their favourite character’s accessories
like Outfits, shoes, watches etc
● Fans can quickly select the item on real time & embedded tools like image vision will
classify the items that User is looking for & will provide access to ecommerce ​( refer
Exhibit for Minimum Viable Product outline)
● Partnership between Netflix, Production houses & ecommerce will ensure that fans receive
the best quality products
● For Netflix : Additional revenue stream other than subscription model, Sponsorship from
Brands can help mitigate high production cost
● Fashion designers (private label) from Production house will get direct access to fan, & can
prevent losses from counterfeit product
● Ecommerce & Netflix can use this collaboration & compliment each other as part of their
MOAT strategy & get first mover advantage against Amazon who has its own streamline &
marketplace
How is this integration & platform going to work?
We are going to use AWS/AZURE to host Netflix server. Operating platform would be IOS,Android
( As this version will only be smartphone based)
Phase 1
​User Experience
● Ensure that any feature addition does not disturb the user experience
● Design & placement of the information must be done in a way that it did not affect viewing
experience, which means entire interface would be done while video is being played ​( Refer
Exhibit 1)
● Scope of work will be limited to specific characters appearing on the screen & accessories
Process
● Once a user selects the character whose accessories or outfit he/she is interested in.
● A snapshot packet will be developed & will be sent to Backend team through HTTP protocol
which will analyse the image & break it down at granular level & classify the image into
clothes, watches, accessories, human ( tool : Image classification tool from Google)
● Backend will send the classified & sorted image to the user which will be displayed to the
user through simple & interactive user interface
● End user will select the item of his choice & this information will be sent to the Back end
team which will send the data to Partner Marketplaces like ​https://www.myntra.com/​,
through an HTTP call to the API of the fashion retailer.
● Market places will respond with all the URL links
● User can click on the URL links & initiate the buy process
User Transition to third party or partner app
● Authorization : Netflix will use OAUTH or user will allow netflix to authenticate them for the
marketplace, which will help in smooth transition of users for Marketplace
​ Abhishek Semwal
IMBA J1 2020

6. ​NETFLIX INDIA
● Conversion rate in the marketplace will be determined by the partners who will validate that
the same users has bought the stuff
● This will take care of the situation where user selected the item but did not buy
Revenue Estimate​ : Average ticket size per transaction per user in India INR 1000 or 12 euro,
considering 5% of user base end up buying one item per month, we can estimate approximate
revenue potential of (100000*12*12 = 14 Million USD /Year revenue)
​ EXHIBIT 1 ( PROTOTYPE DRAFT)
STEP 1 ​: USER watching WAR Movie (2019) on netflix, during the movie he found Actor Hrithik
Roshan wearing trendy outfit
STEP 2 :​ Interactive feature of netflix help him to interact with the character ( This feature is has
already been used in their first interactive movie ​Black Mirror​ : ​Bandersnatch) ​, User Select the
character ( Hrithik Roshan) & information flashes on the left side of the screen:
STEP 3 :​ APP will recognise & classify the outfits or any accessories like watch or shoes or
& will flash it on the left side of the screen ( refer below )
​ Abhishek Semwal
IMBA J1 2020

7. ​NETFLIX INDIA
STEP 4 : ​APP will recommend the following options:
( courtesy : ​https://www.seenit.in/quest/show/72333​)
STEP 5 : ​ USER will select the Buy option & he will be transferred to Myntra/Snapdeal/Paytm to
complete the transaction
​ Abhishek Semwal
IMBA J1 2020