Netflix’s business strategy addresses two key questions: how to win new subscribers and how to retain subscribers. Growth is an imperative and Netflix has expanded across America s and into Europe. However, in order to sustain growth, Netflix needs to consider expansion in the two most populous countries of the world – India and China. This report addresses the choice of India or China as the next port of entry for Netflix. This report by Bollywood Consulting group analyses strategic goals, market and technical landscape, cultural challenges and competitive opportunities in India. It includes recommendations on why Netflix should choose India as well as offer’s suggestions on go-to-market approaches most effective for a launch in India Images from https://www.flickr.com/photos/meanestindian/ This was a team presentation made by USC IBEAR Students in 2014 as part of their coursework for managerial communication and marketing strategy.

1. Deepak Alse
Stephen Parkinson
Randy Rosales
Angela Li
These amazing images are from https://www.flickr.com/photos/meanestindian/
USC IBEAR MBA - 2014

2. Not intended to represent accurate national boundaries of India

5. Where ? Why ?

7. OR
Choices, Choices…..

8. Legacy of British rule
225,226,449
10,000,000
Number of citizens who speak English

9. 30% and

10. 100+ million urban
smartphone users
(2014)
Music, Media &
Entertainment App
usage grew 78%
YoY

11. 20 Billion $
Digital India Program
Nationwide broadband optical network (2015-2020)

12. 1.5+ Billion USD
Bollywood Film
Industry
1000 films/Year

13. 20 Million Daily Viewers (in Theatre) Entertainment and content rich culture
6.2 Billion $ Television Industry -139 channels

14. Challenges

15. $1.8 billion loss on piracy (DVDs
primarily)
Insufficient screens per million -
8 screens vs. 117 screens in
USA
Piracy primarily driven by need
for quick access to content

16. No Yes

17. Marketing challenges with
25 languages & diverse
culture.
Content curating to balance
broader age demographic.
Seasonality and prime time
considerations vary( as
against western markets)

18. 257.8 Minute per viewer per month
31,519,000 viewers per month – 30% through mobile devices
2.1 billion videos – 50+ % of online video market in India

19. Go To Market Plan

20. Launch In South, West &
Northeast- English speaking
audience & urban growth

21. Cheap
Broadband
Launch Netflix streaming subscription
plans with leading telecom providers –
Help their ARPUs

22. Mobile friendly short form content
launch
• key scenes from TV shows,
• short snippets of movies
• little bits from comedy stand-up
Focus on content push through mobile device

23. Family centered subscriptions
State subsidized
educational content
Will embed access into
Samsung and LG Smart TV
market
Cult Classics from National
Service Provider -
Doordarshan

24. Build local language
content
Average Bollywood film
costs about $1.5 million
against $47.7 million for a
Hollywood movie

26. Not intended to represent accurate national boundaries of India