The chain effect of the new streaming services, from the existing players, is showing its impact on Netflix. The online streaming giant has registered its most significant quarterly loss, yet. It is not just the market value, but also many subscribers as well.
To give an idea of things have unfolded. The rivals of Netflix like Disney, Warner, and others have decided to start their streaming services. Some will begin streaming from the last quarter of the year and a few from next year. They have, therefore, decided to pull out all their original content from Netflix.
It meant that Netflix had to produce more original content. To meet the rising expenditure, Netflix had to raise its subscription price, which in turn has led to people opting out and looking for other avenues.
So where does India feature in all this? According to many surveys and reports, the digital market of India is expected to explode in the coming year. In the next three years itself it is going to increase twenty-five times than what it is now. Netflix wants to be a big player and capture a large share of this market. If that happens, it will more than cover up the loss in the US.
The problem for Netflix currently is its pricing and presence of existing dominant players providing services at a lower price. The battle and marketing strategies to hold on the India consumers is going to be interesting in the coming days.