Introduction
Lowest price, good quality video, uninterrupted streaming, huge content library – Netflix have mixed all the ingredients to the recipe to be the leading OTT platform in India. Yet, it is struggling through rough waters while its competitors Disney+Hotstar and Amazon Prime are soaring high with viewership and subscribers.
Netflix started its service on April 14, 1998 as a direct-to-customer DVD mail subscription service. Following its IPO in 2002, Netflix launched its video streaming service in 2007 and since then there is no looking back. When the company went public in 2002 it had 600,000 subscribers and today Netflix is the biggest online streaming platform with 260.8 million subscribers worldwide.
Netflix India Story
With this background Netflix launched its services in India in 2016. It’s the same year when Amazon Prime was launched and a year after the launch of Hotstar (in collaboration with Disney+ since 2020). Internationally, Netflix’s subscriber count is way higher than the other two, but in India the story is different.
| Streaming Platform | International subscriber count (in million) | Indian subscriber count (in million) |
| Netflix | 260.8 | 6.5 |
| Disney+ | 149.6 | 38.3 (Disney+Hotstar) |
| Amazon Prime | 200 | 59.8 |
Netflix is well aware of this huge disparity and that is evident in its continuous effort of increasing market share by lowering subscription plan prices. Right now Netflix is offering the cheapest subscription plans than any other country. The basic plan starts from only Rs. 149/- (USD 1.80) monthly. Whereas Amazon Prime charges Rs.179/- (USD 2.16) per month and Disney+Hotstar charges Rs.299/- (USD 3.61) per year. Besides, all these streaming platforms have collaborations with major Indian telecom giants (Reliance, Vodafone, and Airtel) to draw customers onboard. While other two platforms are continuously increasing their subscriber base Netflix is significantly losing ground, even being the cheapest on market.
It is clear that Netflix is missing something on the strategic ground which a cheaper price cannot cover. In this case study we will investigate those strategic loopholes of Netflix.
Strategic Loopholes of Netflix
Netflix, a leading streaming platform, has been making great strides in expanding its reach globally. However, the Indian market has proved to be a tough nut to crack. Despite focusing on newer content, programming partnerships and localization, the company faces certain challenges such as indigenization and lack of ad-supported free content and add-on services, which are being offered by its competitors. Let’s delve deeper for a better understanding.
Not So Impressive Pricing and Benefits
Indian is a very big market for contest-based businesses; however, the fact is, the Indian population is very much price sensitive. The general customer psychology is to look for maximum benefits while paying minimum prices. Netflix got the second part right by offering the lowest price but slipped on the first part. Let’s see how:
| Netflix | Disney+Hotstar | Amazon Prime | |
| Lowest subscription fee and benefits | Rs.149/- P.M.; Single screen; Maximum resolution 480P | Rs. 299/- P.M.; 4 devices; 4K max resolution | Rs. 179/- P.M.; Multiple screen; 480P max resolution |
| Complementary services | NA | Support ad-based free streaming for select content. | Amazon Prime delivery, music streaming, playing games, Kindle reading |
Now, if you look at the subscription package and additional benefits offered by the competitors, Netflix is still the most expensive streaming platform in India. Access from multiple screens or devices with a single subscription is particularly attractive for families or a group of friends. Besides, the additional benefits (complementary services) make users feel that they are not paying just for video streaming but other benefits are also there. This heightens the sense of value for money, something very important and attractive for Indian customers.
Poor Indianization
Netflix’s lack of localization in the Indian market has been a source of disappointment for its users. Despite producing India-specific content and partnering with Indian production houses, the streaming giant has failed to provide a truly Indian perspective. While focusing on new content is good, it’s essential to understand that the Indian audience requires relatable content.
However, Netflix’s localization strategy has been based on a generic Indian perception, which has been a cause of concern. In contrast, Amazon Prime Video has been providing a diverse range of programming in six Indian languages and dubbing in over 10 languages, which has made it the preferred choice for Indian viewers. Disney+Hotstar took a step further by offering daily soap operas and sports events across Star networks TV channels on its OTT platform which has a huge audience base in India.
Besides, there are many regional players offering content in local languages. Streaming platforms like Jio Cinema, Zee5, Voot. Sony Liv etc. are offering movies and series in multiple regional languages. All these are driving people away from Netflix to more Indianized platforms.
What Netflix Can Do?
Nevertheless, these challenges present an opportunity for the company to rethink its strategy and come up with innovative solutions to cater to the Indian audience. With its solid foundation in other countries, Netflix can leverage its expertise and resources to create a unique value proposition for the Indian market, and eventually achieve success.
Be More Desi
Grey’s Anatomy or Brooklyn Nine-Nine is no doubt the finest English content Netflix offers among others, but these will only attract a particular set of audience, mostly from cities. But to win over the downtown and villages Netflix needs to focus more on Hindi and regional languages. India’s diverse linguistic and regional landscape presents a unique opportunity (and challenge) to create a blend of both local and pan-India content. In order to do this, Netflix should concentrate on making original content in collaboration with major local production houses. Disney+Hotstar followed this, and the result is content like Special Ops and Aarya which gained tremendous popularity. Besides, Netflix never explored two of the most popular content genres, daily soaps and sports. It’s time to do that.
Conclusion
Netflix has struggled to gain a significant foothold in the Indian streaming market, lagging behind competitors like Disney+Hotstar and Amazon Prime Video. To succeed in India, Netflix needs to rethink its strategy and focus on creating more localized and relatable content across various Indian languages and genres, including daily soaps and sports. Additionally, offering better pricing and bundling complementary services could make its subscription plans more attractive to the value-conscious Indian audience. By leveraging its global expertise while adapting to local preferences, Netflix has an opportunity to carve out a unique value proposition and achieve greater success in the vast and diverse Indian market.
