Netflix, a US based MNC, established in the year 1997 is a leading service provider of online video-streaming. It has presence in 190 countries with over 70 million users. It started its operation in India in January 6 with three types of subscription packages:
- Rs 500 per month – Limitless access to all Standard Definition Resolution content
- Rs 650 per month – Unlimited access to all Standard Definition Resolution content + access to 2 devices + access to Ultra HD content
- Rs 800 per month – All of the above 2 + see this in Ultra HD or 4k content + continuous access to 4 devices.
However to survive in Indian market, Netflix would require more and more Indian subscribers using their services. But they are facing several challenges:
- Challenges from Existing Players: Netflix is facing strong competition from the existing streaming service providers like Hotstar and Eros, which are offering all contents. These two are comparatively offering the streaming services at comparatively lower cost. Hotstar offers free mobile application and it has got already 10 million users since February 2015. Whereas Eros Now’s most of the contents accessible for free of cost or available at a minimum rate of Rs. 99 per month.
- Cheaper DTH Service Providers: In India, people can enjoy premium subscription packages only by paying Rs. 500 offered by various DTH service providers such as Airtel Digital Tv, Dish TV, Tata Sky and Reliance Digital TV, etc. So, Netflix is definitely a costlier option for the Indian consumers.
- Users Internet Connection needs to be upgraded: Netflix revealed that customers in India need an advanced version of internet to avail the services of Netflix. Netflix confirmed that their customers require minimum 3 megabits-per-second broadband internet connection to watch movies and 5 megabits-per-second to watch full HD version.
Eventually, Netflix may have to face lot challenges and competition from other existing players in the market. They need to plan and strategize accordingly to get succeed in India. As market in India is little tricky and Hotstar and Eros are now already successful players in the market.