Scatmag.com

January 2020

NETFLIX: JUST 1% OF INDIAN PAY SUBS


A new report from UK research firm Ampere Analysis says Netflix is available in less than 1% of India's Pay TV homes, even though Netflix has declared India as a 'key market.' In India Netflix is overpriced, and viewers have options to view almost 400 Non news channels, each at less than 5% of the Netflix subscription.



VIA CABLE & DTH STBS

More than 50% of GLOBAL Netflix users come via DTH & Cable TV operators, offering it via a 'Netflix' red button on their STB remote control. In return, Netflix offers a 30% revenue commission. However, it requires a minimum of 10,000 such STBs to be deployed, and other stringent conditions. As a result, few Pay platform operators in India promote Netflix.

This year, Netflix has signed more than 15 deals with major global Pay-TV operators.


THE STORY OF NETFLIX

Today, Netflix is the most popular source of streaming movies & TV series, in many markets. According to fortune.com, Netflix's services alone constitute about 15% of all the world's internet bandwidth!

Netflix was founded in California, USA, in August 1997 by Marc Randolph and Reed Hastings.

It was originally a rent-bymail DVD service. (VHS Tape was also considered but DVD was the selected format, due to its robust disc and ease of posting. Users initially had a library of 1,000 DVDs to select from. Netflix would post them & after the renter had finished with the DVDs, they would simply post them back. Netflix began with 11 employees.

Rentals were around $4 plus a $2 postage charge. Users could keep the DVDs for as long as they liked but could only rent a new movie after returning their existing one.







GLOBAL NUMBERS

Globally, Netflix is available in more than 300 million Pay-TV households. 50 million of these were added in 2019.

Netflix is available in about 86% of all Pay-TV homes in North America.

By end 2018, Netflix was available in about 25% of pay TV households in the Middle East and North Africa. This was mainly driven by Pay operator OSN. However, the partnership ended in August 2019, leaving Israel as the only market in the region with existing deals.


UNTAPPED MARKETS

Despite its success in the West, Netflix has large untapped markets.

It almost has no significant numbers in Central & South America, Asia Pacific as well as Central & Eastern Europe.

Out of 400 million Pay TV subscribers in these regions, Netflix has been able to tap only about 40 million of those.

China - the world's largest Pay TV market, remains completely untapped by Netflix. n


In 2010, Netflix introduced its streaming service, and the rest is history! The name Netflix is a combination of "Net" (i.e. internet used to access their website) and "Flix" (a common slang for movies).

BLOCKBUSTER

When Netflix began, the market was dominated by rental giant - Blockbuster. A part of Dish Network, Blockbuster rented movies and computer games, from its large network of shops. At its peak, Blockbuster employed 84,300 people worldwide, including about 58,500 in the United States and about 25,800 in other countries, and had 9,094 stores in total, with more than 4,500 of these in the US.

In 2000, Netflix CEO and co-founder Reed Hastings approached Blockbuster about a partnership. The CEO just laughed at him. Blockbuster even had a chance to purchase Netflix for $50 million.

Netflix currently has a Market Cap of $116.42 billion.

Blockbuster filed for bankruptcy in 2010. n