This streaming service has stepped up its efforts to get a huge piece of India’s booming video-on-demand market, where it has fallen behind local players and Amazon’s Prime video service.
So far, it looks like Amazon has the finest understanding of the pulse of the Indian customer as it has stored up and estimated 9.5 million Prime Video subscription holders there since releasing in December 2016, while Netflix is estimated to be suffering at just 4.2 million subscribers despite being in India for over a year.
The development of Netflix in India has been hindered by premium pricing (Rs. 500 per month fro normal definition, or $7/75 at the recent exchange rate) and a limited content library. Amazon, on the other hand, provides its video subscription service as part of Prime for around $8 a year. So, it does not make sense for a customer to select Netflix given the shortage of content.
However, Netflix is now looking to patch its main faintness to make its service more appealing to Indian customers.
In India, Netflix steps on the gas
Netflix is allegedly ramping up its speculation in India this year to drum up more content and compete with Amazon’s ever-developing online library. The online streaming could spend as much as $300 million on fresh, India-absorbed content, according to livemint.com. Netflix had initially made just 7% of its entire library available in the Indian market, providing it a vital setback in obtaining subscribers.
But it is now ready to stream its first India-particular comedy special — Abroad Understanding — featuring well-known Indian actor and comedian Vir Das. This is the first original production from India to be featured on Netflix worldwide, and should perfectly lead to subscriber development as comedy is the second-most viewed genre in India.
Moreover, Netflix users in India can begin streaming content produced by Red Chillies Entertainment and Viacom 18 Motion Pictures – India’s two popular production houses — from the recent quarter onward. The Red Chillies deal will permit Netflix to exclusively stream thirty motion pictures, along with any new films produced over the next three years
CEO Reed Hastings currently said that India is mainly a film-centric streaming market, so it won’t be astonishing to see Netflix pursue violent content affiliations in this space. What’s more, the online streaming supplier is also taking steps so that Indian customers can relish more content using fewer data.
Netflix’s dynamic optimizer technology will allegedly permit subscription holders to stream 30 hours of content at the expenditure of just 2 GB of data, without cooperating the obvious quality of the content. This will be useful in the Indian context as data costs are high as equal to other countries.
This streaming service has been slow to grow its content library in India as Amazon Prime Video has taken the market by the tempest. Amazon has a different library of above 50 Indian motion pictures and is on track to produce 18 fresh original shows for this market.
What’s more, the e-commerce giant is allegedly going to spend $75 million this year on growing India-particular content, having already knotted up with 15 production houses in the nation. Moreover, Amazon’s investment toward increasing local content is greater than that of domestic competitors Hotstar and Voot, showing its aggressive posture in this market.
Amazon’s enhancing content library and reasonable subscription plan provide it an intrinsic advantage over Netflix, and the gap may broaden if the latter doesn’t do something about its rating. Of course, Amazon will grow the price of its Prime service in India to INR 999 (approximately $15.50 at the recent exchange rate) per year once the introductory offer is over. But even then, it will be much reasonable than Netflix, which might find it hindrance to increasing its subscriber base despite big investments.