C01: Netflix in India Flashcards
Business Model Netflix
Netflix is a subscription-based business model making money with three simple plans: basic, standard, and premium, giving access to stream series, movies, and shows. The company is profitable, yet it runs on negative cash flows due to upfront cash paid for content licensing and original content production.
Netflix Case Short
> aggressive entry strategy - all countries at once
no physical build-ups needed
first in place advantage
youtube Netflix’s plan for world domination - CES interview
local shows with global audience
What makes the Indian market attractive for Netflix?
- India second largest population country in the world
- -> huge potential customer base
- Increase in wealth
- -> more disposable income & spending
- Penetration of internet and smartphone usage increased over time
- Liberal country
- -> no barriers for market entry
What advantages or disadvantages does Netflix have in the Indian market?
- Netflix largest global player with settled partnerships
- Large R&D budget
- High-quality product
- Large range of international films
- High-cost subscription
- Less local content
- No free content
- Non-Indian companies like Hot Star compensate Netflix lack
- -> must adapt to the culture
Which challenges Netflix is likely to face in the Indian market?
- Internet infrastructure problems and absence of robust broadband system
- Existing strong online streamers like Hot Star or Eros + cable TV providers
- Possible unwillingness of the Indian population to pay for the subscription fee
- More than 15 official languages in India
- Different customer market than in America & Europe
Which adjustments in its product (video on demand) and business model (how the company operates) can improve Netflix’s performance in the Indian market?
- Offering a cheaper payment plan
- Offering more local content
- New ways of accessing content
