Case Study

Case Study on
NETFLIX GOES TO BOLLYWOOD

SUMMARY
Netflix grew beyond its local market to 190 countries, and by 2019, 60% of
paying customers were located outside of the United States and Canada.
However, as streaming video on demand (SVOD) became more popular
among customers worldwide, numerous streaming service providers rose
quickly, putting pressure on Netflix.
However, the most notable competition is Disney+, which was introduced in
November 2019 by Netflix's former strategic partner, The Walt Disney Company.
Within five months, Disney+ has 50 million subscribers, including eight million in India, whe
re the service was first introduced in early April 2020
SUMMARY
In comparison, Netflix, which launched in India in 2016, had more than two million
users by 2020.
Netflix saw India, with 1.3 billion people, as the source of its "next 100 million" mem
bers.Netflix's
investment in India had expanded faster than in any other market.In addition, in July
2019, Netflix
launched its cheapest mobileonly membership package for Indian subscribers, priced
at just $2.85 per month, in an attempt to gain traction in the country of value-
conscious consumers.
1. What motivated Netflix to enter
Bollywood?
India is among one of the most digital content-consuming countries, Hasting one of
the founders also observed that India has low internet costs in comparison to any
other country in the world. At the end of 2017, Netflix already gained 500,00
subscribers in India. The founders knew that India had a potential market where
there were 600 million Internet subscribers. Hastings said was “about what a movie
ticket would cost.” He explained: “We would like consumers to compare it with that
than what they pay for cable TV.” India is a battleground for video streaming with an
estimated potential of $5 billion in revenues.
2. If "Netflix Goes to Bollywood," what challenges and opportunities
does the
authors' research highlight for Netflix's expansion in the Indian market?
Challenges that Netflix might face in the Indian market
• Cultural Sensitivity
• Competition
• Content Localization
• Pricing Strategy
Opportunities that Netflix might face in the Indian market
• Growing Market
• Diverse Content Library
• Local Content Partnerships
• Investment in Talent
3.How has content localization paid off
for Netflix for the Indian market?
Netflix’s international streaming revenues exceed its domestic revenues—and
its localization strategy is to thank for this remarkable success in the Indian Market.
What Netflix did right was to understand its Indian audience and deliver content that
would resonate with them. As a result, now it has more subscribers in India and
worldwide than all other pure streaming services combined. Its other strategic
moves were.
• Introducing mobile-only subscriptions at low prices.
• Focusing on expansion strategy.
• Investment decision: investing to produce original scripted content.
• Focusing on core business instead of diversification.
4. Summarize the key insights provided
regarding Netflix's competition with local
Indian streaming platforms?
There are many Indian video streaming players who are potential threats to Netflix, such as
ErosNow, ALTBalaji, and YuppTV, focused on original, local content. Disney+ + is one of the
major competitors in the Indian market for Netflix because on the very first day; Disney+
captured 10 million subscribers. It formed after the merger of two to three large
companies. The fan base of Disney is stronger as compared to Netflix, and there are higher
chances for Netflix to lose its huge market share to Disney +. The fan base of Disney ranges
from children to adults, and also to whole families because it provides content and bundle
packages for an entire family. Disney Plus offers exclusive Disney content with a
subscription only. Netflix continued its global expansion even after losing customers in its
domestic market to Disney +. Netflix increased its investment at a faster rate in India, to get
100 million subscribers from India. It provided low-priced mobile-only subscription plans to
the users at a monthly charge of $ 2.85.
5.Provide your recommendations or strategic insights for
Netflix's continued
growth in the Bollywood and Indian content market?
To reach 100 million users, Netflix needs to expand in the Indian market.
The biggest threat to Netflix is the increased competition from a
number of competitors; the competition is expanding day by day.I would
recommend Netflix to keep to all of its strategy's aspects, including
premium pricing, no additional streaming services, and
concentrate solely on streaming services.
To enhance profitability and reach the aim of 100 million Indian subscribers, Netflix
must include adverts in its streaming service.
As a result, the firm will be able to provide streaming services at a cheaper cost to pri
ce-sensitive clients in India, as the Indian populace is extremely price-sensitive.
The following are the major challenges that Netflix may encounter
when incorporating advertising into its services:
• Can reduce material quality and cause viewers to be disturbed.
• Because including advertisements cause a strategic shift in the
company, communicating it to human resources, clients, and content producers at
Netflix will be tough.
• It has the potential to slow down service delivery.
• It is tough to persuade clients of such a shift in streaming services.
Netflix should also look forward to either a merger or acquisition with local Indian
video streaming players like what Disney + did.
Netflix must also start investing equally in regional content, rather.
Then just promoting Western culture content.
THANK
YOU

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Case Study on

NETFLIX GOES TO BOLLYWOOD

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