Netflix entered India in 2016, but it didn’t succeed immediately. In 2021, its cofounder Reed Hastings admitted that Netflix was still figuring out the Indian market
However, the situation seems to have changed for the entertainment giant now. India emerged as the second biggest market for Netflix in terms of paid subscriber additions in the June quarter of 2024
A shift in content strategy, a revamp of distribution and acquisition channels, and crackdown on password sharing have played significant roles in turning around OTT giant’s fortunes in India
Netflix entered the burgeoning entertainment market of India in 2016, about the same time when the OTT boom began in the country on the back of increasing affordability of smartphones and dirt cheap internet plans. Netflix was a world renowned brand by then, and this gave rise to the expectations that it would take the Indian media and entertainment segment by storm. Obviously, Netflix also believed so.“When we look at Netflix historically, content has always played a critical role. It was not built around huge stars and big directors. Before Netflix came to India, most of the large, popular shows were not directed by Hollywood’s top directors nor did they feature the biggest actors. Unfortunately, for India, this was not followed. Initially, there was a heavy dependency on celebrities and some of the largest studios,” founder of a regional OTT platform said.“The new strategy of balancing content investment between theatrical releases and high-budget shows like Heeramandi has proven highly effective. Furthermore, incorporating local comedy stars like Kapil Sharma has resonated with Indian audiences, enhancing the perceived value of Netflix’s content library,” Shrivastava said.To put things in perspective, in May this year, Netflix partnered telecom major Vodafone Idea (Vi). Under the partnership, Vi has started offering prepaid tariff plans bundled with Netflix subscription.This, coupled with the decrease in competition in the Indian OTT market has benefited Netflix, according to Sodhi. For example, one of its prime rivals, Amazon Prime Video, has been producing original series in limited capacity. Disney+ Hotstar reduced its content in India even before the merger with the Reliance Group’s media business.Commenting on this trend, Taurani said, “In terms of premiumisation, it is just the usual trend playing out in a market like India. The premium customer is not seeing any pressure in terms of spending or income levels. From that standpoint, it bodes well for Netflix. However, the premium market is substantially small. Netflix would need to go beyond the premium market, which is why they have also cut prices in two rounds. Currently, the pricing is affordable, with a plan at INR 149 for mobile. Hence, I foresee that this kind of growth rate will continue moving forward.”
Early in its journey in the country, in 2018, Netflix cofounder Reed Hastings predicted that the company’s next 100 Mn subscribers would come from India. The company hired seasoned executives from top broadcasters and struck numerous deals with big production houses.