Netflix is not doing well in Southeast Asia and India.
Netflix Inc. is gaining significant momentum. The company is making massive investments to come up with high end original shows. Since its sudden global launch, the entire world has been taken by a storm and analysts are still appalled by its performance. The service has finally paved its way to 130 nations which has put an end to its efforts to emerge as a global streaming content provider.
So now the stampede it was facing globally has finally settled down. It is being assumed that the company might face problems in the local industry. When the company launched its original shows, they were extremely anxious to become the pioneers in terms of original streaming content. However, over the passage of time, the persona of these shows has blurred out particularly in the South East Asian and Indian market. The reason why the company has not gotten a positive response in the Asian market is that the platform does not cater to local content so that they can cater to their conventional and cultural needs.
As per Quartz, the media startups that are operating in the Asian markets are already coming up with substitutes to Netflix that are low priced. They are now targeting the billions of consumers that are the video streaming giants potential target market but are facing various constraints to opt for NFLX. They either find the service to be expensive or are not interested in subscribing to it. The local platforms are supported by the partners thus these companies already know that the pricing strategy needs to be cheap so that masses get willing to invest on the service. Moreover, they also have the local content which appeals to the likings of the local populace.
Moreover, these startups are made according to the ideologies of the locals thus the payment methodology is rather service. Moreover, the platform is accustomed to the local Internet service bandwidth which makes streaming faster and efficient. The reason why problems arouse is that most countries in Asia are not acquainted to credit card payments. Unlike in Western countries the Internet bandwidth is very low which makes it difficult for services like Netflix to offer a hassle free experience. Thus these startups work in a manner that addresses the issues faced by the locals.
According to a report by Quartz, there are around 35 video streaming services that are operational in Southeast Asia and India. These platforms are providing online video streaming service on demands similar to Netflix as per Media Partners Asia.
For instance, Eros, a popular media company operating in India is offering similar services as low as $0.8 for its membership. Services like My Plex, Hotstar, Spuul, and Zebgta TV are operational in India and sabotaging the adoption rate of Netflix.
Netflix has surfaced globally so it needs to tweak itself according to the likings of the masses. The content needs to be customized according to the preferences of the region and the local issues need to be addressed so that they can gain traction.