Why Netflix is Struggling in India?

why Netflix is struggling in India

We all know that Netflix is the world’s most popular OTT(Over the top) online media streaming platform. It is growing rapidly in the USA and European countries.

Today, we will discuss why Netflix is struggling to grow only in India.

According to CNBC, Netflix has 137 million subscribers. In which, 58.5 million subscribers are from the United States and 78.6 million subscribers are from the other various countries.

Netflix is able to expand its business to 190 countries in the world and growing rapidly. But, there is only one country Netflix is facing too many difficulties to grow.

Amazon prime and Netflix both have not been able to capture the enough market then expected.

5 Reasons Why Netflix is Struggling in India:

1. Hotstar:

The most popular online media streaming platform in India is Hotstar.

Hotstar was launched in February, 2015. And Netflix was launched in January 2016. So within one year, Hotstar had started capturing targeted audience.

Hotstar provides the free access to most of the shows which are telecast in Star Network TV channels. That is the biggest reason why people love Hotstar.

India is a country where most people love to watch cricket. Star India holds the contract to show the world’s biggest cricket league ‘Indian Premier League'(IPL). Hotstar provides free to watch feature with 5 to 10 minutes delay in streaming.

Also, it also streams many international tournaments of different sports.

That’s why Hotstar holds about 70% of market share in on demand local streaming services.

2. Pricing:

Netflix is charging almost 2 times than other big players in India.

Hotstar offers $3/month for premium shows. Besides, it offers 80% of the content without taking any charge.

Amazon prime offers $1.90/month. In which, they also provide Amazon prime music.

On the other side, the cheapest plan of Netflix starts with $7.30/month. Pricing is the key factor for not being able to grow in the world’s fastest growing economy.

3. Privacy:

Unfortunately, Netflix does not able to protect the privacy of the content they produce.

Most of the web series of Netflix are freely available on the internet. Well, the Indian market is price sensitive. If the content is freely available(however it is illegal) then why to pay for it. This is the common mentality of Indian youth.

Also read: 14 Amazing Things to Know About Netflix

4. Less Regional Content:

Netflix should need to focus on the regional content just after few months of launching.

But, the company delayed to take action for almost 1 year to create regional content. Till now, there is less regional content on Netflix.

Mostly in India, people prefer to watch web shows and series in Hindi language rather than English.

There are many languages being spoken in India. That’s why Netflix is facing difficulties to the understand how they should work on regional content.

5. Marketing Strategy:

Before entering in the Indian market, Netflix was already a billion dollar company.

They could have spent millions of dollars on advertisement to all the channels of marketing. It could be traditional ads or digital ads. But, the company spent comparatively less money than most other American companies.

Netflix got less word of mouth marketing just because of this thing.

Disney has made huge move towards OTT platforms.

Recently, Disney has confirmed that the company is going to launch their OTT platform that will be cheaper than Netflix.

By the end of 2019, Disney will make a big move.

Let’s see what happens in the OTT market.

Watch this video…

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About Anuj Vohra

Hi , I am Anuj Vohra. Founder of Itsfacile.com & Saral Investment.

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