Netflix in India: Opportunity Knocks?

Netflix’s Market Entry Strategies in India and the UK – Comparison and Evaluation

Read the case study below: Netflix in India: opportunity knocks?

The drivers and impact of globalisation with specific reference to a key emerging market and the largest country (by population) in the Commonwealth. Netflix, an online video content provider,  serves  about  80  million  subscribers  globally  spread  across 190 countries. Netflix was founded in 1997 by Reed Hastings and Marc Randolph. It is a network of internet streaming showing TV shows as  well  as  movies  on  different  internet-connected  devices including computers, TVs, and mobile phone devices. Netflix co-founder and CEO Reed Hastings announced his plans to conquer the world in January 2016. During the 2016 Consumer Electronics Show in Las Vegas, Hastings revealed that Netflix added 130 countries to its list of 60 countries where Netflix services were already available. One of the nations that the Internet streaming  media  provider  now  offers  its  services  in  is  India.  India is one  of  the  largest markets for Netflix to explore with the subscriber base for mobile users in India crossing the one billion mark in 2015. However, it is prudent to note that most of the Indian population has not been familiar with online streaming as they have been accessing their video content from cable operators and Direct to Home  (DTH)  service  providers.  Amidst prevalent  piracy,  low  Internet  connection  speeds and availability  of  full-length  movies  and  television  episodes  at  very  low-cost  (or  free)  on  cable  TV  and several websites, Netflix launched its video streaming service in India in January 2016. However, its 'subscription-only'  model's  pricing  was  not  adjusted  to  the  Indian  market  but  was  maintained  at  the global standards, which was very high compared to that of the existing competitors. Growing  from  400  million  internet  users  in  July,  by  the  end  of  2016  India  was  having  an  Internet subscriber base of about half a billion. The majority of these mobile subscribers are youth. This young generation is comfortable watching TV shows and movies on the phones because of the low broadband penetration as well as the lack of reliable Internet groundwork. Netflix has made its fastest investment in India compared to any other market since its entry and has said the country has potential for over 100 million members in the future. Looking at these statistics, Netflix’s move to venture into India as thus raises questions of  if  the step  is  a sure win  or  there  are challenges that they have to deal with before they can celebrate. 

Write a report in response to the following tasks:  
1.Critically analyse how the  growth  strategies  of  Netflix  were  influenced  by  the drivers  of globalization.
2.Compare and evaluate market entry strategies adopted by Netflix in India and the UK
3. Examine the opportunities of expansion for Netflix into another Asian market.
4.Identify one sustainable approach that Netflix could adopt when expanding into another Asian market.(Note: You should consider the same Asian market in task 3 and 4.) 

Your report should be structured as follows (additional guidance/requirements are given in brackets):
•Introduction (i.e. critical analysis of how Netflix’s growth strategies were influenced by the drivers of globalisation).
•Netflix’s market entry strategies in India and the UK –comparison and evaluation.
•Opportunities for expansion into another Asian market.
•Sustainable approach to expanding into another Asian market.
•Conclusion (i.e.  the lessons learnt  for  expanding  and  succeeding  in  other  markets  in Asia and beyond in the future)

Recommended websites:
McKinsey Global Institute (MGI) (Links to an external site.)
Academy of International Business (AIB) (Links to an external site.)
International Trade Centre (ITC) (Links to an external site.)
Commonwealth Secretariat (Links to an external site.)
RSA (Royal Society for the encouragement of Arts, Manufactures and Commerce)