Reed Hastings, the Co-founder of Netflix is frustrated with the lack of success in India. Despite its large population and growing economy, India has never been an easy market. Global giants like Uninor, Timberland, General Motors to name a few, have failed badly in past. But the interesting aspect is for Netflix not finding the right formula when OTT has really taken off in India.
Everyone is talking about pricing and regional content being the two main reasons behind lack of success for Netflix in India. Yes, of course the pricing is a key factor in Indian market. But it usually not the high price, but the right fit for a product is required. Consider Kia Seltos for a moment. The price isn’t low by any standards, but it clicked as and doing very well in the segment. Netflix has not really targeted a specific segment as of now. The mobile only strategy is great, but timing isn’t. When Prime Video was offering at 499 a year, Netflix was still offering a Rs 600 a month plan. Password sharing is obviously another aspect linked to revenue loss.
Content type is more important but the content acquisition cost is more crucial. Netflix has been spending heavily on content acquisition. Take for example, Netflix paying 85 crores for Sooryavanshi. There is not one series that is part of Indian psyche. Scam 1992 did wonders for SonyLIV and people connect to this series. Netflix hasn’t been able to create that level of connect with Indian audiences. Its not always about fancy star cast and grand plot. Sometimes it is about the connect with people and culture.
And one key aspect that has not found a mention often is Piracy. Most of the Netflix content is available on different platforms. Netflix will have to find better and innovative solutions to piracy. The combination of content, pricing and piracy accompanied with timing has been a key challenge for Netflix. Only time will tell what Netflix is planning to find the right cocktail for Indian market.