Indian internet users to rise to 730 million(by 2020) from
350 million (2015). 75% of internet users in India are in the age group 15-34. Implies there is a large population that has potential to consume Netflixs flagship offering. Huge success of Indian soap opera like Kyuki saans bhi kabhi bahu thi shows how Indian market appreciates original content. So therefore Netflix has a huge profit potential by creating similar original content tuned to the local market.
Indian Internet users - Age wise distribution
6 3
16
37
38
15-24
25-34
35-44
45-54
55+
We are proud to partner with Star World Premiere HD to
get this much-awaited series(Game of thrones) to India.
Head of Marketing London dairy on sponsoring GOT in India
Expedia, P&G etc. and other big brands line up to advertise
in, and sponsor such shows for their growing popularity. This shows how inclined the youth of India is towards English titles. So, Yes India is a profitable market.
Pay per title model
US TV cable revenue/ user $80-$100
Netflix subscription rate $8-$10 Indian cable TV market price $4-$10 High data cost in India Price conscious Indian mentality Mobile driven digital growth Pay per title with competitive pricing suitable for India
Legal, regulatory or cultural issues
for Netflix No legal and regulatory issues for videos on demand Social mindset of India Netflix videos have adult content which is not suitable for family viewing
Is Netflixs global image enough ?
Netfilx needs a dedicated marketed campaign. Differentiate itself by providing niche original content similar to Narcos, HoC etc but made for India Go for competitor pricing Position yourself as a provider of quality original content tailored to regions. Be the main sponsor of events like Comic con. Go for print ad advertising in malls. Set up kiosks that stream UHD content. Discount teenage shows to hook them young.
So what can Netflix do?
Rope in directors like Vidhu Vinod Chopra, SS Rajamouli, AK Murugadoss etc. Long term collaboration with a major production houses like YRF. Only 31 movies from theIMDB Top 250are currently available on Netflix. Streaming observer So increase the quantity and quality of the content