Market dynamics

Netflix must understand market dynamics, otherwise the downfall is inevitable

Netflix stock took a hit with the loss of 200,000 subscribers in the January-March 2022 period. The over-the-top (OTT) giant is one of the most famous entertainment platforms in the world, but the demand for his services is down. It should be noted that the termination of services in Russia also contributed significantly to the decline in the number of subscribers.

Netflix has estimated that it could lose around 2 million more users in the April-June quarter of 2022. The company is trying its fair share of methods to keep users hooked on the platform, but things aren’t working. just not. It seems that Netflix does not properly understand the different markets in which it provides content.

Netflix is ​​the most premium OTT platform in India

What a user pays for Netflix in a quarter in India could allow them to subscribe to several entertainment platforms annually. If you are in India and you have the premium access to Disney+ Hotstar or Amazon Prime, you will have to pay Rs 1500 for an annual subscription. However, there is no similar annual pattern available with Netflix.

Netflix charges its customers on a monthly basis, and its premium plan, which offers the best quality content, costs Rs 649 per month in India. This is almost 50% of what users have to pay to get an annual subscription on other platforms. This is a big problem that Netflix needs to fix.

Another big problem with Netflix that I think a lot of people face is the problem of choosing something to watch. While Netflix has made efforts to tell people what’s in the top 10 in their country, that doesn’t exactly solve the whole problem.

There is so much content in Netflix that users sometimes can’t help but feel overwhelmed with what they can watch. Almost every day something new comes to the platform. A user can’t help wondering what is the cost of the time he pays to watch something that might have a better alternative on the same platform. For example, if I watch Ozark, I can’t help but wonder if I could have spent the same amount of time on another show on Netflix that falls into the same genre.

Now, the same problem can occur with other platforms, but the problem, especially with Netflix, is too many alternatives than most users would like.

To solve this problem, Netflix started recommending shows to people. It could have worked to some extent. But the rise of other OTT platforms with a different content strategy has changed things in the market.

Especially if you have the Disney+ Hotstar streaming all the Marvel and Disney movies and TV shows plus content from other premium production houses, you wouldn’t want to pay that much for Netflix.

Netflix wants revenue to keep coming in steadily, but the company can certainly consider a quarterly, at least if not annual, subscription model that’s slightly more affordable on a monthly basis.

Plus, Netflix has to do something that Disney+ Hotstar does. The platform needs more regional content. One thing that Netflix did well was to add anime and Korean content. Other platforms are a bit behind in this regard.

Ultimately, Netflix is ​​also an old platform. This is something many users miss. The platform has added games which, to be honest, are not the best differentiator. To compete in a market like India, where users are very price sensitive, Netflix needs to offer something better and different from what other OTT platforms are doing.

For starters, the company may rethink bringing a new user interface (UI) to its platform. It’s a lot of work and comes at a huge cost, but it could be a step in the right direction.

TV shows and movies coming to Netflix also need to be promoted better. There are so many titles that have arrived on the platform that many people are unaware of. This does not happen with shows on other OTT platforms.

Things are not so bad for Netflix. The OTT giant is still an important and popular platform despite the drop in the number of users. It can make a comeback with more regional content, listening to what users want, and offering long-term subscription models.

After Sacred Games, Netflix hasn’t really delivered a major local TV show or movie in India. This is something the platform needs to consider and work on.