NETFLIX AND INDIA
The US streaming giant Netflix, a ubiquitous in US, a household entity made entry into Indian market in 2016 seeking to expand its user base into developing markets. The comp...See more
Why Netflix didn’t fly as it had hoped when launched in 2016?
SWOT analysis of Netflix in India
- Strong brand equity
- High quality streaming content
- Big pockets
- Recent focus on creating original Indian contents
- High subscription price
- Small segmentation and targeting
- Predominantly English content
- Lack of original Indian content
- Huge smartphone user base
- Cheap data price
- Rapid urbanization and change in life style
- Decline in the quality of Indian TV content
- Competition from Hotstar, Amazon and other streaming services
- No entry barrier in the market, advent of new and cheap streaming services
Netflix managed to bring in only 1% of the 23.78 million members it added worldwide in 2017. SWOT analysis provides us an insight which can be analysed to explain why Netflix is struggling in India. One of the glaring reasons is extremely premium pricing of Netflix in a country whose per capita income is 1/9 of the USA. On an average, Netflix charges 300% more from its consumers compared to industry average. That’s a lot of money Netflix is asking for half of the content it offers in US. This pricing strategy obviously excludes a large chunk of population who could have been its potential customers. Other than that Netflix doesn’t yet offer specialized content for Indian population like it does in other countries. India still is a majorly Hindi speaking nation and it’d be tough for Netflix to catapult its market share unless it pulls in these segments of society. Competition for services like Hotstar is also a big challenge which is winning over the market by providing news, sports and other contents.
Netflix needs to up its game to thrive in India.
Added: 9 months ago