Netflix’s growth in India on a slippery turf

Abstract

Research methodology A secondary research method was used to collect data for this case. The authors have made use of newspaper articles and published articles written by journalists and experts, which are available in the public domain. Case overview/synopsis This case discusses the hurdles faced by Netflix in India. Netflix experienced rapid growth ever since its entry into the Indian over-the-top (OTT) sector. The aggressive pricing strategies by OTT competitors put Netflix in a defensive position in India. Netflix introduced the low-priced mobile-only plan to attract price-sensitive Indian consumers. However, this was not sufficient. Netflix was forced to reduce the price of all its plans in December 2021. The dilemma faced by Reed Hastings (Founder and Co-CEO, Netflix) was whether the revised price was low enough to hold on to existing subscribers and attract new subscribers in India. Netflix was caught between the rock and the hard place in its pursuit to achieve its target of achieving 100 million subscribers from India versus continuing its skimming-pricing strategy. This case highlights the compound challenges of low household income in India and high-income inequality resulting in a lower available market for multinational service providers such as Netflix. The pricing plans and features of OTT competitors in India have also been discussed in sufficient depth to facilitate analysis and classroom discussion by the target audience. Complexity academic level Undergraduate students studying marketing management and basic marketing courses in business management and commerce streams can use this case. This case can also be used for marketing specialization courses at the undergraduate level.