The above graph represents the growth in Netflix users in India, starting from 2016 to 2020. The total number of Netflix users in India is estimated to reach 26.6 million users by the end of 2020, showing a 111.7% YoY growth. However, the eMarketer estimates a sudden decline in the growth of Netflix India users starting from 2021. In spite of exploded adoption of high-speed internet connectivity and the increasing number of smartphone users in India, the Netflix’s India growth story is no better than a disappointment. As the OTT platform will add only 6.8 million new users between 2020 and 2021, the growth of Netflix in India is far from expectations.
Growth in Netflix Users in India
|Duration||CY 2016 – 2020|
Netflix debuted in India market in 2016. After clocking astounding growth of over 300% in its user base during the first two years, the leading Video streaming player is struggling to gain grounds in India – the second-largest country by the number of internet and smartphone users.
To put things in perspective, Netflix India accounts for just 2.8% of total digital video viewers in India. In 2020, it’s quite unlikely that there will be a drastic improvement in the presence of Netflix in India. The company is estimated to capture just 3.1% of total digital video viewers in India in 2020.
Two major reasons behind Netflix’s lukewarm performance in India are pricing strategy and regional content.
In a market like India, which is widely popular for its price-sensitivity, pricing strategy plays a vital role in the growth of any company. Netflix’s subscription in India starts from Rs 6,000 per year that allows subscribers to stream Netflix content only on a single screen. To have multiple screen subscription India consumers have to pay little over Rs 9,000 per year – which, definitely, is a considerable amount for Indian content consumers.
The unavailability and frequency of regional and localised content is another pain point of Netflix in India. Like the US, the company has opted to stay focused on English content largely. However, in a country where the influence and adoption of regional language and localisation play an important role in the success of any business Netflix’s content strategy has not been lucrative enough so far. Only a small fraction of video content viewers are hooked with Netflix for the consumption of content that is primarily licensed or created for the US market.
About Netflix: Additional Information
Netflix Inc. (NASDAQ: NFLX) was founded on August 29, 1997, by Reed Hastings and Marc Randolph as a DVD-rental-by-mail firm. However, the company began its operations on April 14, 1998, by opening the world’s first online DVD rental store. For $19.95 a month, subscribers can rent as many DVDs as they want. The company slowly expanded its business by offering the streaming service in the US while retaining the DVD and Blu-ray rental service. In September 2010, the company began offering its streaming service to Canada, which later expanded to other international markets such as Latin America, the United Kingdom, Ireland, Australia, etc. Netflix is now available almost every corner of the world, except in mainland China (due to local restrictions), Syria, North Korea, and Crimea (due to US sanctions).
Netflix’s IPO (initial public offering) completed on May 29, 2002, selling 5.5 million shares of common stock at the price of $15.00 per share.
On January 22, 2018, Netflix’s market capitalization ballooned to $100 billion, becoming the largest digital media and entertainment company in the world.
Netflix is ranked #38 on the list of the World’s Most Valuable Brands by Forbes, with a brand value of $15.5 billion in 2019.
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