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Netflix: Case study (Indian Perception)
- 1. Group 7 Parth Shah 2015032 Siddhant Kapoor 2015052 Abhishek Sharma 2015064 Shivam Lamba 2015114 Udit Kukreja 2015181 Shobhit Chawla 2015235
- 2. KEY ISSUES Asian and Indian perspective • Price: Indian consumers are not habitual to paying for content online. Expensive in comparison to cable networks, opposite trend to American market • No local content: With only 6-7 % of Indian households watching English content generating customized content is necessary • OTT service by major players: Content generators like Zee, Sony and Star have existing OTT services over Ditto, Sony Liv and Hotstar • Internet connectivity and coverage: India ranks 115th in average net connection speed
- 3. • Piracy: Availability of paid content for free over sites like fmovies, 123 movies and torrents • Business strategy: Expansion in 130 countries without proper research and implementation of local customization • Regulatory restriction by Govt.: Countries like Indonesia censor online content for violence and adult content
- 4. • Competitive pricing with regular attractive offers – Registration shouldn't require credit/debit card details – Free lifetime access to limited regional content • Tie up with local media houses for regional content – Garner upcoming content creaters and provide them with a platform • Enter markets with strict anti piracy laws • Gradual step by step focused expansion in select regions – Deep research and enhanced regional tie ups – Better share prices Solutions
- 5. • Flexible Bandwidth – The video streaming service automatically adapts to the user’s data plan and meet the available bandwidth • Commercial Free – Netflix has maintained its stance of keeping its services advertisement free even in its expansion strategy • Pioneer in quality content – Netflix is making quality content a standard in the VOD market by supporting original content creation Best Practices
- 6. THA KS
Editor's Notes
- PRICE: Price has been set at 500 INR for basic pack and 800 INR for premium pack while hot star is 180 INR per month for premium pack; The U.S. cable TV average revenue per user (ARPU) is around $80-$100 while Netflix’s subscription rates are $8-$10. But the Indian cable TV market has one of the lowest ARPUs in the world at $4-$5. At current pricing, Netflix’s basic subscription plan is virtually double. LOCAL CONTENT : Netflix announced first original series in the country based on novelist Vikram Chandra’s Sacred Games. The company has partnered with Phantom Films, a film studio founded by Anurag Kashyap, Madhu Mantena, Vikramaditya Motwane and Vikas Bahl to produce the series. OTT SERVICES BY MAJOR PLAYERS : Viacom 18 is set to launch its OTT platform later this year, while Star India (hotstar), Sony Pictures (Sony Liv) and Zee (Ditto) are already present in the space. These are players which generate maximum and most popular content for indian markets Internet Connectivity and Speed : Overall, India occupied the 115th position for average connection speed and the 114th position for average connection speed globally. The average page load time for a broadband connection in the country was 3.9 seconds.
- Regulatory restriction by Govt : Indonesian govt. has asked net flix to open a local office to deal more strictly with censorship issues
- Price Points: Netflix needs to bring down the subscription charges alongwith free access to limited content to keep itself aligned and then aim at converting these free subscribers to paid. Regional Content: Tie up with local media houses and generate exclusive content, create a platform for upcoming talent and assist them with production expertise and keep their content free to access. Gradual Expansion: A well strategized step by step expansion would have led to loyal customer base, with high local adaptation. It’d have lead to higher stock prices as well.