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Netflix and Amazon Are Struggling To Win Over the World's Second-Largest Internet Market (cnbc.com)

An anonymous reader shares a report: As Netflix and Amazon search for new users abroad, they are increasingly looking to India as a big market. Once crippled by poor internet infrastructure and low household income, the world's second-largest internet market has exhibited tremendous potential in the recent years. It's proving, however, to be a tough nut to crack for the American streaming leaders.

Leading the pack in the nation is Hotstar. Owned by Star India, which is controlled by Twenty-First Century Fox, Hotstar had about 70 percent of the on-demand local streaming services market earlier this year, according to estimates by research firm Jana. The three-and-a-half-year-old service has 150 million monthly active users, CEO Ajit Mohan told CNBC in an interview. Netflix, by contrast, has fewer than one million subscribers in the country, according to industry estimates. Once considered a luxury, an increasingly growing number of Indians are giving online streaming services a try. Companies have taken notice: More than 35 streaming services have launched or expanded their businesses in India in the last three and a half years, with many more planning to enter Bollywood soon. [...] Analysts say sporting events and local content are proving crucial in bringing new users to video platforms and then keeping them online, two areas where international giants are struggling.
Hotstar, which offers much of its content to users at no charge (instead relying on ads to make revenue), charges $3 for its premium offering. In contrast, Netflix charges Indians about $8 a month.

Sports streaming in particular is helping local firms gain new users, the report said. You might remember Hotstar, which entered the US and Canada markets, set a new global concurrent record in late April, and now it turns out SonyLiv is getting more concurrent viewers to the FIFA World Cup in India than Fox Sports is generating on its digital platform in the US.

29 comments

  1. No Netflix in Federal Prison by Anonymous Coward · · Score: 0

    Amazon... will probably be running them within the decade, I have a feeling.

  2. Re:India is a dirty shithole by Anonymous Coward · · Score: 0

    Perhaps his job tried to monetize India as well?

    It really does suck; I've only been once, that was enough. After that we were able to start hiring local devs again. India is just a waste of time on all accounts.

  3. Re:India is a dirty shithole by Anonymous Coward · · Score: 0

    India's a big place. There are plenty of shitholes all over Arizona, Tennessee, West Virginia, Connecticut, Utah... plenty of absolute and utterly depraved shitholes that would be India if not for the Federal Government here.

    I guess in a weird way, you support a more constructive government in India to meet the needs of the people better. Good for you. Fix your own shithole first though.

  4. Make a KILLING by Anonymous Coward · · Score: 0

    Selling FLUSH TOILETS!

  5. The Question by Anonymous Coward · · Score: 0

    ... is whether it will be profitable or not. Netflix credentials are shared with multiple people who may or may not know the one paying for the service. Also, pirating is extremely common.

  6. Look at what sells now by AHuxley · · Score: 1

    0. Understand what is selling now and sold over decades.
    1. Find the experts who can create the same content, scripts, movies, series, plots, musicals, comedies, thrillers, political dramas.
    Offer local experts with good ideas for their own market money to create content.
    When an idea sells, offer more money for the next great idea.
    2. Find the actors who are photogenic and who can make the above plots, ideas sell.
    Glamour and prettiness with the ability to act.
    3. Profit.

    Local people with good ideas who can sell content. Never bring a brands US SJW politics into other markets.
    Try and risk new people with new ideas but make sure they can fully write up their all content.
    Look for people with a past profit making track record https://en.wikipedia.org/wiki/... and ask them to write up their ideas.
    Merit, marketing, the ability to write, actors who look good and who know who to act. Bring them together and great new local content.

    --
    Domestic spying is now "Benign Information Gathering"
    1. Re:Look at what sells now by Actually,+I+do+RTFA · · Score: 1

      That plan doesn't make sense. They are selling an all you can stream service. And, there are probably only 1 orr 2 winners in India. So, spending on being 2nd, not 3rd, or 1st, not 2nd is worth far more than the additional revenue that it brings in.

      Which is to say, shotgun money (since both have nigh-infinite cash) at anything that sounds interested, and then use metrics to renew shows or not.

      --
      Your ad here. Ask me how!
    2. Re: Look at what sells now by Anonymous Coward · · Score: 0

      That approach has not worked for either of them in the usa. They pedal so many bad shows its ridicules. They have no hope elsewhere

    3. Re:Look at what sells now by AHuxley · · Score: 0

      A "all you can stream service." that needs new local content people want to pay for every month.
      Translated US SJW series might not sell well outside the USA.
      Different markets may have different ideas as to what a plot is and what kind of plot arc sells.
      What is funny. Who is photogenic. Local censorship laws. Local politics and what topics are not allowed.
      What topics really sell and make millions over decades.
      Buying decades of low cost older local content is not going to sell as local people have see it.

      Find the local expert content makers who can write up a new idea, given them the support they need and make content that sells.
      Pay actors that test well in the market. People who can really act and who can work hard to sell the new series, movie.

      Find local people with skills who can write new content. Read what they present and have local experts approve new ideas that will sell.

      --
      Domestic spying is now "Benign Information Gathering"
    4. Re:Look at what sells now by del_diablo · · Score: 1

      But it does make a lot of sense.
      The entire obstacle of Netflix or Amazon is that people need to invest into a streaming device, a audio/video setup, find out about Netflix/Amazon, and then sign a subscription.
      From what I remember in Scandinavia, as Netflix penetrated the marked, it was of big importance to have shows that already went on TV, and also have access to popular shows that where hard to find on DVD at the local consumer electrical retailer. So there was some 90s Disney cartoon series, X-Files, Star Gate, and a lot more on Netflix. And they needed those shows to get people to sign up. And once they had signed on, watched a few, gotten comfortable with the platform, they would keep on going and watch more stuff.

      What anon AHuxley is saying, is that you need something to sell the entry subscription. For India that would historically have been a gaudy dance drama action series. A "Bollywood Drama".
      Once Indian audience enter the inside of Netflix, they might watch westerns, some cinema movies, tv series, but they want more of the stuff they think they want. So they don't want to watch poor shows like Iron Fist, when their native TV stuff is better at that genre.

    5. Re:Look at what sells now by Jeff+DeMaagd · · Score: 1

      Netflix didn't do that at the start, they licensed a bunch of existing content. I don't know if they intended to make their own shows from the start, it seems like they decided they needed to do that because the incumbent content owners started making their own streaming platforms and wouldn't license to Netflix as much anymore.

  7. Re: India is a dirty shithole by Anonymous Coward · · Score: 0

    Are we now pretended no that India is a really nice country that people want to move to?

  8. Eww by Anonymous Coward · · Score: 0

    I just imagined what smell-o-vision would be like in a 3rd world country where people poop on the streets.

    Well..."people" is a bit of a stretch for a collective cult group of rapists among other labels that could easily and rightfully be applied to them. Maybe ape-men? Inbred homunculus? Mongloid rape ravers? Poop creatures? Llama monkey hybrids?

    At any rate, I do not want to hear stories about a group which directly is in conflict of interest with our best interests, I just want them and their culture gone or at least physically very far away so we don't start going towards a mad max dystopia like they have created.

    Anything involving those repulsive fucks is only ever going to draw out negative responses...why not just stick to more dry subjective matters about current technology and not bring up these nightmare fuel shit crazy cultists anymore?

    1. Re: Eww by Anonymous Coward · · Score: 0

      Fuck those fucking stinky mongoloids and the people that employ h1b "programmers" should be killed in 99% of cases

    2. Re: Eww by Anonymous Coward · · Score: 0

      Oh I would absolutely LOVE to have one of those 'purge' nights to go after everyone involed with the H1B treason.

      What possible insanity lead to them allowing foreigners to saturate our high end job market with no benefit to us what so ever unless you could unemployment or stagnant wages as a benefit.

      I've never heard of any country before that willingly let a giant chunk of its population get run out of the work market by foreigners, we fight wars to keep this crap from happening.

      The entire H1B program needs to be shut down because it is economically counter productive. Allowing a foreign national to take a citizens job should be grounds for a charge of treason.

  9. Re: India is a dirty shithole by Anonymous Coward · · Score: 0

    India is roughly 1/3 the size of the United States, yet the population is 4 times greater.

    It sucks there, especially the big cities.

  10. Re:Maybe by Anonymous Coward · · Score: 0

    Whiny Republican INCEL pseudomales are being mentally assraped by SJW's even to the point of dominating their Saturday night routines? Wow...

  11. Re:India is a dirty shithole by Anonymous Coward · · Score: 0

    San Francisco, Seattle, New York. Very deep shitholes and getting shittier every day. But they love living in shit, so fuck'em.

  12. Re:India is a dirty shithole by Stormwatch · · Score: 0

    Designated shitting streams! ...oh wait, that'd be the Ganges.

  13. Diddums by Anonymous Coward · · Score: 0

    No one wins when big monopolies are gouging us all

  14. Not only content but ISP's have costs by Anonymous Coward · · Score: 0

    You have to include the ISP costs for streaming too. People in many countries have terrible speeds, and good broadband is expensive and has limited coverage. I would argue music streaming has similar costs and limitations of appeal to families with smaller incomes. This goes low income problem affects the expansion of all technology from smartphones, to computer sales, gaming, and streaming content.

  15. India is corrupt by Anonymous Coward · · Score: 0

    Both Netflix and Amazon just need to find the right officials to bribe before they get anywhere.

  16. USA FTW anyway by xxxJonBoyxxx · · Score: 1

    >> Netflix and Amazon are butthurt that some company owned by Fox is killing them in India

    So what - it's two American companies competing with a third American company. No matter what, the USA seems to be winning.

  17. Why India? by Anonymous Coward · · Score: 0

    The biggest nation of suckers is the USofA.

  18. Amazon seems to have started comericals on Prime by Anonymous Coward · · Score: 0

    Just watched Midnight Eye and got a commercial for Goliath at the beginning. And a commercial for FREAKING Amazon Prime on the 2nd episode.

    This is just blindly stupid consumer abuse.

    Bye Bye Prime. I can wait and put in larger orders or buy local if I need it faster.

  19. Re: India is a dirty shithole by Anonymous Coward · · Score: 0

    Mormons don't shit in the streets. Indians do.