One of the world’s largest streaming company, Netflix Inc. (NASDAQ:NFLX), has successfully launched itself in the Australia this year. According to the sources, the company is all set to establish a near global existence with some speculating its launch in India soon. Given the tremendous growth of internet users in India, a launch in India is not a distant possibility.
Netflix and the Indian Scenario
Netflix, Inc. (NASDAQ:NFLX) is a popular direct to home video streaming service that is considered one of the biggest in the world. The company has a record figure of 60 million subscribers. Out of those, 40 million are from its domestic market only while nearly 20 million accounts for its global presence. With the recent launch in Australia, these figures will change soon. According to a spokesperson of the company, Netflix Inc. (NASDAQ:NFLX) is trying to go nearly global by the end of next year, i.e. 2016.
On the other hand, India is a very new and emerging market for Video On Demand services. India’s mobile subscriber base ranks second in the world with 970 million subscribers. The country is the second largest mobile market in the world after China. The internet connection and reach is also expanding rapidly with the smartphone market.
The Current Players
The streaming service market already has some key players. These players might present a part of the problem for Netflix, Inc. (NASDAQ:NFLX) should the company decide to launch in the country.
Hooq: This service was recently launched in India by Warner Bros, Sony Pictures and SingTel. This is a video on demand service available for INR 199 per month.
HotStar: This Star India Network’s service has gained popularity recently due to its streaming of cricket matches. This service has an extensive library of content.
Ditto TV: This is a similar service owned by Zee TV.
Eros Now: This is a very attractive service by well know production firm Eros International.
Tata Sky: This service integrates TV and VOD experience.
Even though Netflix, Inc. (NASDAQ:NFLX) manages to overcome this competition, it has one more and perhaps the biggest challenge to face; the internet connectivity. Even with the launch of 3G, the average internet speed in India is 2 mbps compared to the 11.2 mbps in the United States. Perhaps the launch of 4G might solve the problem to some extent.
Sources: hollywoodreporter
