Netflix demand in India and Southeast Asian markets is plunging due to lack of local content
Netflix Inc. is running at a massive speed after it implemented its global expansion plan. The company offers its services in 190 countries to more than 70 million customers. It is constantly investing big amount money on its original content and overall content. Now after being a truly global TV network, it is planning to bring in and produce content for customers all across the world. For instance, before making its way in the Indian market, Netflix decided to turn a crime gangster movie into a TV series for the Indian viewers.
There is no doubt in the fact that its global expansion left the media world a bit stunned. This does not mean that the company is performing well in all international markets. Netflix did have a successful launch in the 130 new nations and it is also performing better than other established local and foreign streaming service providers, but it seems like the stampede will end sooner than everyone thought.
By introducing exclusive shows, Netflix thought that it has become the pioneer of streaming original TV shows and movies and it certainly was. In the beginning, the company looked excited and it attracted most of its customer base globally. Over the time, the demand for Netflix’s original content started to fade away in a couple of regions. The main reason of demand plunging is that the exclusive shows have not gotten exciting feedbacks from the streaming subscribers mainly from the Asian markets. Customers in India and other Southeast Asian countries feel that the exclusive content does not suit their cultural and conventional entertainment needs and they would appreciate more local content than foreign content on the platform.
Quartz reported that Netflix would face tough competition from the local media players including established businesses and startups. Local companies are coming up with lower priced alternatives for the people living in less affluent Asian countries. The platform will be home to many customers that are in the same target audience of Netflix but either cannot afford it or do not wish to subscribe for it. Local partners will be supported media startups who said to not only offer a lower-priced alternative but also include a good range of local online movies and TV shows on their platform.
According to the founder of Media Partners Asia, Vivek Couto, revealed that currently 35 video-streaming platforms are offering its services to the viewers in India and Southeast Asia. He further added that iFlix and Hooq are leading the Southeast Asian streaming market with having a larger market share as they offer a mix library of local and foreign content.
The chief technology officer at Hooq, Michael Smith, said in a statement, “We work with [local broadcaster] GMA in the Philippines, and that’s heavily watched on the service—even though people can turn on the TV and watch the same thing. The local stuff is going to have a lot of play.”
This is true that in the Asian market, people prefer local content to the Hollywood content hence if there is a lack of local content on Netflix the Southeast Asian viewers will start looking for alternatives that are also available for them.