With the advent of new streaming services everyday, the market is getting saturated. Netflix is trying to keep the crown on its head in any way possible. The streaming platform has been facing some serious competition in the Indian market, where its competing with around 3 dozen competitors. In a measure to secure its place on the throne, Netflix is planning to invest $420 million in India on content.
Disney has a monopoly over the entertainment industry. As shows like ‘The Mandalorian’ make their way into people’s hearts, Netflix is all geared to fight for the prize.
Reed Hastings, the chief executive of Netflix addressed a conference in Delhi. There he said,“This year and next year, we plan to spend about Rs 3,000 crores developing and licensing content and you will start to see a lot of stuff hit the screens”.
Netflix has been facing stiff competition from its competitors in India. Hotstar, the Disney owned network was spending anywhere around $17 million on producing seven original shows this year, while Eros Now had pumped about $50 million into its India business to create 100 new original shows.
Netflix entered India in 2016 because of the potential of the Indian market. Home to 1.3 billion people, half of India’s population is online and that makes up for a huge customer base. Netfllix has produced more than two dozen shows throughout it’s lifetime in the subcontinent, securing partnerships with various media houses like Shahrukh Khan’s Red Chillies Entertainment.
Shows like ‘Sacred Games’ and ‘Bard of Blood’ have garnered fame and Netflix has established a wide customer base. In FY19, the company posted a revenue of $65 million and profit of about $720,000 for its India business. Because of this huge response, Netflix is ready to place a bet as large as $420 million in India.
Netflix recently launched a special plan for its Indian customers. The plan allows streaming shows only from mobile at SD and costs just Rs.199/month.
Disney+ will be available in India next year through Hotstar. Before it arrives, Netflix wants to secure it’s position as the top streaming service in the country. While Hotstar might not be as popular as Netflix, Disney+ shows might tip the scales and Netflix is fully aware of it. The investment is just a testimony to how important the vast Indian market is to multinationals.