Netflix is bringing Dodos back?
No Dodos were harmed during the making of this blog-
We all might find the Demogorgon in Stranger Things extremely terrifying but maybe not as terrifying as Cable T.V finds streaming services. That's right; "Cord-cutting 101" is probably the scariest read for Cable T.V. With all this, the likes of Netflix may seem unstoppable. But is everything that simple when it comes to the creators of the Demogorgon (and countless more brilliant pieces of entertainment)? I think not.
Netflix-
Netflix has quite the story to tell. It started off as a DVD-by-mail rental service. While Netflix's DVD service is still alive today and coming off as fairly profitable, many people only know Netflix for its streaming service and renowned original shows and movies. It has reached quite heights after its humble beginnings. It became the most valuable entertainment company for a while crossing Disney. It got 24 million subscribers in 2017. But most importantly it became a 'global TV network' expanding into 190 countries. That is a major step for such a company. Netflix set a goal of #NetflixEverywhere and to the naked eye it seems as it finally comes true. But take a closer look.
Going global-
What’s most interesting about Netflix's Global ventures is how it executed the whole thing. Unlike many other companies (in many different fields) it did not try and conquer the world one country, one city at a time. It took a very radical approach to the world outside its comfort zone. There is this quote "good things take time. Great things happen all at once". Well it seems as if Netflix took it quite literally since it expanded its reach to 190 countries at the same time. "While you have been listening to me talk, the Netflix service has gone live in nearly every country in the world except China" is what co founder and chief executive of Netflix Reed Hastings said at its launch. In just one day Netflix had gone from 60 countries to 190. Too much? Or not enough?
Do you have any plans?
Many people think that Netflix may have taken too much on its plate at once. Netflix's move is seen more as a symbolic step into the global field rather than a practical plan to conquer the world. And no evil genius can ever succeed unless he/she (this blog is against gender discrimination) has a plan (which is usually explained in much detail in most movies, something along the lines of "So let me tell you how I captured you"). Netflix spends hundreds of millions of dollars on its original shows and movies and many of them are not worth the huge investment. But, for companies like Netflix cost-effectiveness and practicality are not the most important. Big spending and "failure is not an option" mantra works better for such groundbreaking and "non-traditional" companies. The World and Stock Market is buying into the act, with Netflix shares rising after the Global announcement. Eventually, it will have to wake up and face reality but for now Netflix can continue being well... Netflix.
Trouble overseas-
Netflix expanded overseas a long time ago and it has been fighting in many major markets. During this whole time it has succeeded in some countries while in some it is still struggling. India is a ginormous market with 1.3 billion populations. So any company that can conquer India will add a jewel to its collection. But, not all of them use or are able to afford a streaming service. So it is estimated that around 1.6 million people use a streaming service in India. That may be a fraction of the total but it is a huge market.
However, Netflix has a problem setting its foot in the sea of Indians. Netflix and Amazon are the two major international giants in the field. They both have a similar approach to it but differ in many ways. Amazon has recognized the power of the Bollywood industry in India and is going head fourth to try and get as much regional content as possible. Netflix is also doing that but not as vigorously as Amazon. As for originals, Amazon is signing up one show after another with some of India's best directors. Netflix on the other hand, is working on a couple of regional shows but it has decided not to strain all resources on one country (no matter how big it may be). This is where maybe the fault of taking on so many countries at a time comes in. If Netflix had started few countries at a time it could have devoted more resources to each country and slowly expanded. Those way maybe things would not be looking so sideways for Netflix.
More of India and other countries-
But, that is not the only reason Netflix is struggling in India. Hotstar is a local competitor taking the giants head on. If you think of the Indian Streaming market as a cookie (or the conventional pie), there is a lot of competition, waiting to get a chunk of it. Amazon, Netflix and Hotstar are all eyeing this giant cookie. Currently Amazon's and Netflix's share of the cookie is minor compared to Hotstar’s. Hotstar dominates 69.4 percent while Amazon has only 5 and Netflix 1.4 percent (as measured by app installation). However, those results may not count people who would be using only a laptop or the TV (and therefore not download an app). But, this does show that in a market like India's, regional players have a huge advantage. Hotstar offers many free shows and movies (great for anybody on a tight budget), live sports (hear the cricket fans dance) and complete regional content along with rights to many HBO shows (game of thrones) and Disney movies. So, things look a little rough for Netflix in India. Many think that it doesn't stand a chance with its pricey service and limited regional content, other think that it may be a breath of fresh air.
Lucky for Netflix India isn't the only country where Netflix is available in fact there are 189 more. A good example of a "success" would be Japan. Netflix gained some ground in Japan increasing its market share from 4.3 percent to 7.1 percent. It's clear advantage there would be that it is one of the only streaming services that has big budgets for amazing original content. It is especially focusing on making more animated Japanese shows and has made many investments in Japan. However, it is still not number one. Amazon doubled it’s share to somewhere around 11 percent while Netflix only increased by 3. It is also facing some competition from Hulu Japan and regional services. Some other successes would be the Philippines and South Africa, where Netflix seems to be going strong. However, things don't look as merry for Netflix in Russia and Turkey.
Can Netflix do it?
Do what? World domination? Bring back Dodos from extinction (like Jurassic park)? These may sound far-fetched and impossible (are they?) but, Netflix's goal of #NetflixEverywhere is not going be to be as easy as pie. For starters many markets (like India) have a lot of potential but need more attention. Markets like Russia seem hopeless at times with all the government restriction. And Netflix hasn't even been able to put a toe in China (It doesn't seem like it will be able to any time soon). However day-by-day, episode by episode, binge watch by binge watch, Netflix gets closer to its goal. It is possible that eventually Netflix may be able to call itself a true Global TV service.