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NEW DELHI: The world’s largest online paid TV network Netflix may look at tweaking its premium strategy for India, as it finds itself lagging behind Hotstar and YouTube in the booming over-the-top (OTT) market. The US-headquartered company, which currently derives most of its streaming revenue from outside the US, may enter lowerpriced segments to attract new subscribers.
When asked about the Indian OTT market during the June-quarter earnings call, Netflix co-founder Reed Hastings said, “We’re way behind YouTube, Hotstar. Those are really the leaders on internet.” In India, Netflix competes with a host of OTT players, including Amazon Prime Video and Star TV-run Hotstar that charge lower subscription fees.
Hotstar, for instance, follows a hybrid subscription model and charges viewers for only premium content. In contrast, Netflix, which has invested heavily in producing slick shows in regional languages for the Indian audience, addresses affluent viewers at a hefty premium.
Netflix CFO David Wells said a market like India has three-or-four different sort of growth patterns due to different demographics and segments and Netflix may address them one after the other. “Each one has a specific set of challenges and we’re in the early days of sort of that first segment,” said Wells. “So yes, expect more from us in terms of getting into segments two, three, and four.”
India will enter the top 10 largest global OTT video markets by 2022 with revenue of over Rs 5,500 crore, according to audit and consultancy firm PwC. Growing annually at around 23%, the domestic OTT market is currently pegged at Rs 2,019 crore.
When asked about the Indian OTT market during the June-quarter earnings call, Netflix co-founder Reed Hastings said, “We’re way behind YouTube, Hotstar. Those are really the leaders on internet.” In India, Netflix competes with a host of OTT players, including Amazon Prime Video and Star TV-run Hotstar that charge lower subscription fees.
Hotstar, for instance, follows a hybrid subscription model and charges viewers for only premium content. In contrast, Netflix, which has invested heavily in producing slick shows in regional languages for the Indian audience, addresses affluent viewers at a hefty premium.
Netflix CFO David Wells said a market like India has three-or-four different sort of growth patterns due to different demographics and segments and Netflix may address them one after the other. “Each one has a specific set of challenges and we’re in the early days of sort of that first segment,” said Wells. “So yes, expect more from us in terms of getting into segments two, three, and four.”
India will enter the top 10 largest global OTT video markets by 2022 with revenue of over Rs 5,500 crore, according to audit and consultancy firm PwC. Growing annually at around 23%, the domestic OTT market is currently pegged at Rs 2,019 crore.
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