Why is NETFLIX unsuccessful in India?

With hundreds of original TV series in its content base, Netflix is yet to be successful in India and is in fact, far behind its competitors like Hotstar, Hooq, Amazon Prime, and Voot. Here is what you need to know regarding its failure in India.

Netflix has over 55 million subscribers in the US and 118 million in the world. I have come up with a SWOT (Strength, Weakness, Opportunity, and Threat) analysis regarding its failure in India.

netflix SWOT analysis

Pricing Model

According to me, the Netflix Pricing Model is currently a flawed model. Indian market is completely different than the US market. However, instead of coming up with an adaptive pricing strategy, Netflix has a standardized pricing model. It comes with 3 plans, starting at INR 500. The other competitors like Hotstar charge only around INR 200 per month. In order to gain popularity among the masses, Netflix needs to bring down its price.

Payment Options

Netflix has very limited payment options. While in the US most of the purchases are made through credit cards, in India debit card is the most widely used online payment option. Although Netflix allows Debit card payments, one needs to activate international payment option in order to pay for its services. Most Indians don’t have international payment options activated on their debit card. Hence, Netflix should bring in more payment options like Rupay card payment, PayTM, UPI and other digital wallets.

Limited Local Content

India is a diverse country in terms of language. Barring the millennials (20-34 years age group), a majority of the Indian adults prefer local contents, news, and sports. Netflix doesn’t delve into sports and due to its limited local contents, it has failed to attract a large number of people. It can work on curating its contents for the Indian audience. It should include regional language movies to create interest among the people.

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Thus, cultural differences between the American and Indian viewers is a major reason for the slow take-off of Netflix In India. The success of ‘Sacred Games’ is a hope that the Netflix may survive in India. However, it has not yet revealed the statistics concerning this. Time to sit back and watch Netflix’s next step

Relevant: 3 Times Cultural Differences In Business Affected Sales


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