netflix - mcafee.com/activate - netflix success

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NETFLIX
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INDUSTRY OVERVIEW (OTT INDUSTRY)
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• The India OTT Industry is estimated to reach a
  size of 5 billion by 2023, according to a
  report by the Boston Consulting Group.
• The industry has a bright future in India with
  the country set to become one of the top 10
  markets for OTT Video Streaming Services by 2022.
• A general transformation in the Indian economy,
  in the form of increased data availability, low
  data rates and increased income has facilitated
  and will continue to aid the OTT industry in
  India.
• The customers in general are willing to subscribe
  if the content has value and appeal. Therefore,
  the OTT giants in India are changing their game
  by introducing regional content.

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COMPANY OVERVIEW NETFLIX

• Netflix, an OTT Streaming giant is an American
  media-services provider headquartered in Los
  Gatos, California, founded in 1997 by Reed
  Hastings and Marc Randolph.
• The companys primary business is its
  subscription based OTT service.
• The company has an amazing growth trajectory,
  since it was able to expand its operations into
  190 countries in about three years since 2015,
  when it was present in just 50 countries.
• Netflix expanded in India in 2016, boasting a
  rich collection of international movies and
  shows.

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NETFLIX USA VS NETFLIX INDIA
USA
INDIA
500 movies 530 TV Shows Limited local content
4500 movies 1150 TV Shows Huge localised
content library
CONTENT
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Standard Plan 7.70
PRICE
Standard plan 7.99
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PORTERS FIVE FORCE ANALYSIS
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HIGH
This is a major threat due to already established
players like Hotstar and Amazon Prime Video.
Further, television, film and torrent industry
are strong substitutes.
THREAT OF SUBSTITUTES
HIGH Suppliers power is high in India because
in offering media streaming services, content is
the key. Netflix will have to collaborate with
various media houses to produce local content.
MODERATE The market comprises of already
established companies that have covered almost
every aspect of the market. Therefore, Netflix
does not face much threat from new entrants, but
in order to become a market leader, it has to
pump in enough resources.
THREAT OF NEW ENTRY
SUPPLIERS POWER
RIVALRY HIGH
BUYERS POWER
HIGH There are several options available to the
consumers, in the form of TV shows, Torrent and
other OTT platforms, because of which the
buyers power is high for Netflix.
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NETFLIX Struggles in India

• NO LOCALISED CONTENT
• Failed to understand Indian tastes and
  preferences
• One of the main barriers preventing success
• MARKET SKIMMING STRATEGY
• Less price, High volume is the key to success in
  Indian Markets, but Netflix chose a different
  path
• Fails to understand Indian psychology
• CATERS TO ELITE India has greater Middle and
  Lower class population, but Netflix, due to its
  Pricing Strategy, caters only to the elite
  section of the Indian audience

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FIRST OPTION REFORMING PRICE
VS
VS
Rs. 600 per month
PRICING
Rs. 1000 per year
Rs. 1000 per year
Local content according to the regions
CONTENT
Majorly English content
English, Local content and monopoly in sports
streaming
MARKET SHARE 5
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69
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REFORMING PRICES NOT A VIABLE OPTION

• LUXURY BRAND PRICING STRATEGY
• Netflixs strategy appeals to the elite class.
• Reducing prices would go against its image of an
  international brand and the loyal customer base.
• OTHER REASONS
• Lack of local content would be a barrier even if
  prices are reduced.
• Netflix will not be able to provide incentives to
  viewers to shift from the competitors towards it.
• If prices are reduced by a large extent, even
  then a large proportion of the Indian population
  would not subscribe, because of a fundamental
  difference between the Per Capita Incomes of
  India and USA.

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SECOND OPTION INTRODUCTION OF KIBBLE APP

• (AS A WHOLLY-OWNED SUBSIDIARY OF NETFLIX INDIA)
• NETFLIX INDIA

KIBBLE
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STRATEGY
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Advertisement based Video-on Demand (AVoD) model
Available on Android and iOS
Free Application
Collaborations with media houses, bollywood
production houses and data providers
Ad free version to users who have Netflix
subscription so that they can enjoy local content
Ad free for the first month
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STRATEGY FOR LOCAL CONTENT
Since local content will play a crucial role in
Kibbles success, therefore, according to the
above data, it can foray into local content
primarily in Hindi and subsequently in Marathi
and Bengali languages to woo Indian customers.
Source KPMG
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16 Million
(Expected number of downloads of the Kibble App
in one year)
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450 Million (expected number of internet
subscribers in India in 2020-21)
RURAL AREAS 52 of the total rural
population(700M)
URBAN AREAS 63 of the total urban population
(400M), i.e., 252M

• Not considered as the target market because of
  the following
• Dominance of TV
• Slow internet connectivity
• Low prevalence of OTT services

ABOVE 35 YEARS (28) Not considered as target
market as people in this age would most
probably not use OTT services
BELOW 35 YEARS (72) i.e, 181 M
Not all people in the age group below 35 years
use an OTT service. Therefore, it is assumed
that only 70 of these people might use the
Kibble app as an OTT service. Source Internet
and Mobile Association of India Thus, 70 of 181
Million 126 Million people will be the major
customer base that might use the application.
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126 Million
TWO OTT USERS (21) 27 Million
THREE OR MORE OTT USERS (63)
SINGLE OTT USERS(16)
20 Million
79 Million
ESTIMATED NUMBER OF CONVERSIONS IN ONE YEAR
10 Million
1 Million
5 Million
NUMBER OF DOWNLOADS IN ONE YEAR 16 MILLION
The conversion rate has been kept moderate, but
a positive growth trajectory is on the cards for
kibble due to our marketing efforts, free
application and collaborations
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We are at 120 Million across the world. The
next 100 Million is from India
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