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Netflix in India Case Study Solution

Introduction

Netflix, an online video content provider, serves about 80 million subscribers globally spread across 190 countries. Netflix in India Case Study SolutionNetflix 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. 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 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 Statement

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. For your reference, Netflix right now has a little more than 94 million subscribers worldwidewith 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. The challenges that required the company’s attention included whether Netflix would be able to endure and rise above problems for them to meet the needs of the consumers in India. There was also need to address whether the Indian market was well seasoned to adapt accordingly to the more sophisticated models of subscriptions such as the subscription video on demand (SVoD).  The other issue that required the attention of the global Internet streaming media provider was how they were going to get a sizeable share in the Indian market as the country was still struggling with fundamental infrastructure issues including low penetration of Internet.

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