Viva doc.

XIMB BM 2019-21

NETFLIX IN INDIA
Introduction
Netflix, Inc (Netflix), the world's leading provider of subscription video on demand (SVoD), launched its
Indian platform on January 6, 2016. Due to its huge population, India represented a lucrative market.
Furthermore, the younger generation in India had dynamic consumption patterns that were comparable
to those of Western consumers, giving Netflix another reason to invest in the country.

History
Netflix was founded in 1997 by Reed Hastings and Marc Randolph. It is a network of internet streaming
showing TV shows as well as movies on different internet-connected devices including computers, TVs,
and mobile phone devices. Netflix co-founder and CEO Reed Hastings announced his plans to conquer the
world in January 2016. During the 2016 Consumer Electronics Show in Las Vegas, Hastings revealed that
Netflix added 130 countries to its list of 60 countries where Netflix services were already available.

Case Body
One of the nations that the Internet streaming media provider now offers its services in is India. India is
one of the largest markets for Netflix to explore with the subscriber base for mobile users in India
crossing the one billion mark in 2015. However, it is prudent to note that a majority of the Indian
population has not been familiar with online streaming as they have been getting their video content
from cable operators and Direct to Home (DTH) service providers.

Growing from 400 million internet users in July, by the end of 2016 India was having an Internet
subscriber base of about half a billion. The majority of these mobile subscribers are youths. This young
generation is comfortable watching TV shows and movies on the phones because of the low broadband
penetration as well as the lack of reliable Internet groundwork. Looking at these statistics, Netflix’s move
to venture into India as thus raises questions of if the step is a sure win or there are challenges that they
have to deal with before they can celebrate. Questions mainly rose six months after Netflix launched in
India and the buzz surrounding the launch came down.

Problem
India is immensely essential for Netflix in the long haul since it is one of the most grounded Internet
markets (on the planet) and Internet TV is the future. The following 10 to 20 years around the globe will
be a period of awesome change with the development of Internet TV, as brought out by Reed Hastings,
Netflix CEO. India would be a vital market in light of the fact that there are (now) more than 300 million
mobile broadband clients in India and every last one of them is a potential subscriber to Netflix. Netflix
right now has a little more than 94 million subscribers worldwide with about 40 million subscribers
coming from outside the US. Following Netflix’s launch in India, there have been questions challenging
the move by the Internet streaming media provider.

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 Viva doc. XIMB BM 2019-21

• Would the company be able to meet the diverse needs of Indian consumers?
• Were the Indian market and consumer seasoned enough to adopt a more sophisticated model of
SVoD?
• How could Netflix get a stronghold in a market that was still grappling with basic infrastructure
problems and low Internet penetration, as well as censorship issues?

Questions
1. Provide a Porter 5 Forces analysis of Netflix India.
2. Provide PEST analysis of India with reference to Netflix’s expansion.
3. What according to you are the limitation in the current business subscription model in India?
4. Albeit a formidable player globally, it is not the first mover in the Indian subcontinent and has
competitors who are doing really well. Provide ideas on how it can surpass its competitors.

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