Netflix’s market share in India
Netflix (NFLX) has been trying to expand in India, the world’s second-most populous country. The online streaming company entered India (INDA) in 2015 with 826 content titles. Its content library increased to 4,706 titles in May, according to a report by Quartz.
Netflix lags behind competitor Amazon (AMZN), which entered India with Amazon Prime in July 2016. Amazon Prime ranks third among India’s streaming services, following Hotstar and Viacom’s (VIAB) Voot. However, Netflix lags behind local services and other US players.
Netflix competes with Amazon in India
According to research from global industry analysis firm Counterpoint, Netflix has about 5.0 million subscribers in India, less than the 11.0 million Amazon Prime subscribers in 2017.
As films dominate the Indian entertainment industry, Netflix has inked deals with several Indian production houses. These production houses include Shah Rukh Khan’s Red Chillies Entertainment, Anurag Kashyap’s Phantom Films, and Anil Kapoor Film and Communication Network. Netflix is also looking to add more localized content and has reportedly allocated up to $88.0 million per year for original content in India.
In 2018, Netflix released its first made-in-India original movie, Love Per Square Foot. The content giant is also slated to release various series and short films.
Amazon (AMZN) Prime Video plans to launch several original series in a reality show format in India. Amazon has also partnered with India’s major music labels and more than 300 regional record labels to allow Prime users to listen to music in ten languages.
Amazon’s efforts to add video and music to its Prime bundle are attracting consumers to subscribe to Amazon Prime, which costs 999 Indian rupees per year (~$15). Prime subscribers can also enjoy early delivery and first access to deals on its platform.