Netflix- McAfee.com/Activate - Information

1. NETFLIX Type your text PRESENTED BY: http://iamcafee.com/

2. INDUSTRY OVERVIEW (OTT INDUSTRY)

3. The India OTT Industry is estimated to reach a size of $5 billion by 2023, according to a report by the Boston Consulting Group. ● The industry has a bright future in India with the country set to become one of the top 10 markets for OTT Video Streaming Services by 2022. ● A general transformation in the Indian economy, in the form of increased data availability, low data rates and increased income has facilitated and will continue to aid the OTT industry in India. ● The customers in general are willing to subscribe if the content has value and appeal. Therefore, the OTT giants in India are changing their game by introducing regional content. ●

4. COMPANY OVERVIEW: NETFLIX ● Netflix, an OTT Streaming giant is an American media-services provider headquartered in Los Gatos, California, founded in 1997 by Reed Hastings and Marc Randolph. ● The company’s primary business is its subscription based OTT service. ● The company has an amazing growth trajectory, since it was able to expand its operations into 190 countries in about three years since 2015, when it was present in just 50 countries. ● Netflix expanded in India in 2016, boasting a rich collection of international movies and shows.

6. NETFLIX USA VS NETFLIX INDIA USA INDIA 500+ movies 530+ TV Shows Limited local content 4500+ movies 1150+ TV Shows Huge localised content library CONTENT 1 2 Standard Plan: $7.70 PRICE Standard plan: $7.99

7. PORTER’S FIVE FORCE ANALYSIS

8. HIGH This is a major threat due to already established players like Hotstar and Amazon Prime Video. Further, television, film and torrent industry are strong substitutes. THREAT OF SUBSTITUTES HIGH Supplier’s power is high in India because in offering media streaming services, content is the key. Netflix will have to collaborate with various media houses to produce local content. MODERATE The market comprises of already established companies that have covered almost every aspect of the market. Therefore, Netflix does not face much threat from new entrants, but in order to become a market leader, it has to pump in enough resources. THREAT OF NEW ENTRY SUPPLIER’S POWER RIVALRY: HIGH BUYER’S POWER HIGH There are several options available to the consumers, in the form of TV shows, Torrent and other OTT platforms, because of which the buyer’s power is high for Netflix.

9. NETFLIX : Struggles in India NO LOCALISED CONTENT ● Failed to understand Indian tastes and preferences ● One of the main barriers preventing success MARKET SKIMMING STRATEGY ● Less price, High volume is the key to success in Indian Markets, but Netflix chose a different path ● Fails to understand Indian psychology ● CATERS TO ELITE: India has greater Middle and Lower class population, but Netflix, due to its Pricing Strategy, caters only to the elite section of the Indian audience

10. FIRST OPTION : REFORMING PRICE VS VS Rs. 600 per month PRICING Rs. 1000 per year Rs. 1000 per year Local content according to the regions CONTENT Majorly English content English, Local content and monopoly in sports streaming 5% MARKET SHARE 1% 69%

11. REFORMING PRICES: NOT A VIABLE OPTION LUXURY BRAND PRICING STRATEGY ● Netflix’s strategy appeals to the elite class. ● Reducing prices would go against its image of an international brand and the loyal customer base. OTHER REASONS ● Lack of local content would be a barrier even if prices are reduced. ● Netflix will not be able to provide incentives to viewers to shift from the competitors towards it. ● If prices are reduced by a large extent, even then a large proportion of the Indian population would not subscribe, because of a fundamental difference between the Per Capita Incomes of India and USA.

12. SECOND OPTION: INTRODUCTION OF KIBBLE APP (AS A WHOLLY-OWNED SUBSIDIARY OF NETFLIX INDIA) NETFLIX INDIA KIBBLE

13. STRATEGY

14. Advertisement based Video-on Demand (AVoD) model Available on Android and iOS Free Application Collaborations with media houses, bollywood production houses and data providers Ad free version to users who have Netflix subscription so that they can enjoy local content Ad free for the first month

15. STRATEGY FOR LOCAL CONTENT Since local content will play a crucial role in Kibble’s success, therefore, according to the above data, it can foray into local content primarily in Hindi and subsequently in Marathi and Bengali languages to woo Indian customers. * Source: KPMG

16. 16 Million (Expected number of downloads of the Kibble App in one year)

17. 450 Million* (expected number of internet subscribers in India in 2020-21) URBAN AREAS RURAL AREAS 63% of the total urban population (400M), i.e., 252M 52% of the total rural population(700M) Not considered as the target market because of the following: ● Dominance of TV ● Slow internet connectivity ● Low prevalence of OTT services ABOVE 35 YEARS (28%) Not considered as target market as people in this age would most probably not use OTT services BELOW 35 YEARS (72%) i.e, 181 M Not all people in the age group below 35 years use an OTT service. Therefore, it is assumed that only 70% of these people might use the Kibble app as an OTT service. *Source: Internet and Mobile Association of India Thus, 70% of 181 Million = 126 Million people will be the major customer base that might use the application.

18. 126 Million TWO OTT USERS (21%) 27 Million THREE OR MORE OTT USERS (63%) SINGLE OTT USERS(16%) 20 Million 79 Million ESTIMATED NUMBER OF CONVERSIONS IN ONE YEAR 10 Million 1 Million 5 Million NUMBER OF DOWNLOADS IN ONE YEAR = 16 MILLION * The conversion rate has been kept moderate, but a positive growth trajectory is on the cards for kibble due to our marketing efforts, free application and collaborations

19. “We are at 120 Million across the world. The next 100 Million is from India” To Secure Your device from Malware, Trojan and other harmful viruses then visit McAfee.com/Activate or http://iamcafee.com/

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