Define a strategy for Netflix to compete with Amazon Prime and Disney+ Hotstar to adopt to users in the Indian OTT market.
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First of All I would like to ask few clarifying questions:
- what is the goal of this ? do we want more subscribers or do we want to drive engagmen for existing users:-> want to add more subscribers which are currently accessing content on amazon prime and hotstar
- should we explore this from product offering or pricing can also be considered:-> both
I will briefly touch upon the current netflix offering
Netflix is OTT platform very popular for its content in western world. Some of the strength we can see is:
- All the netflix content are original is more suited to younger segment.
- Netflix gives flexibility to users to watch content on go and also option to download
- Content are rich and a visual delight if watched in high definition devices
- covers broad genre i.e romance, drama, action, scifi for their segment
Some of the areas we feel netflix has not done great are:
- It hasnt focussed on content which are more relevant for kids
- content more relevant for indian consumers:-> they had tried their hand with sacred games and few more which had been hit but most of the content has been a failure and limited to specific target segment. Netflix content is yet to attract the broader indian segments
- in terms of pricing :-> it offers 799pm . it has low priced pricing offer which users can access on their mobile
- Recommendation is one of the key strength of hotstar
Lets look at the competition:->
- hotstar wins in having a content which can cater to broad segment. its one of the best platform for content aggreation. after getting acquired by disney it has further diverse content for kids.
- Amazon prime video is complementary offering for its prime members. Even though users may not be interested in buying separate amazon prime video memebrship the complementary membership allows them to access content. Of the late amazon has been focussion on content creation as well apart from agrregation. They are trying to tap you indian segment users. some of their rerent series are examples of this i.e bandish bandit, breathe, family man etc.Basically they can a force to recon if netflix doesnt catches up fast with content suited to indian users
Stragtegic choices for hotstar
- Hotstar has lot of customer data. They should leverage those data to get insights to understand the content more suited to Indian consumers. It has good partneship with studios. They can work with those studios to create content for Indian users. They can also look at partnering with indian content creators i.e Balaji, YFP etc
- Lots of children watch disney and marvel content but same time they watch lot of content on youtube which are open source. Japanese cartoons etc. They can look at content creation for kids. Partners with those free lance creators. target specific segment within kids. 2-6. 6+
- Pricing is cerainly and opportunity for hotstar. They should look at pricing competitive to hotstar and amazon prime. Though cutting down prices heavily will bring down the revenue so this needs to be looked strategically. probably creat a new pricing module for genre i.e
- Live gaming-> younger segment plays a lot of games, poker, counter strike. hotstar can look an opportunity to telecast live games. this should also allow particiaption option. Downside is it should not encourge games like gambling where there is potential of losing big sums of money else it would invite bad press
Evaluate the strategic choices
- Option1 would be a it difficult and will take longer to implement. they have been in market and still not able to crack so better to work on this in parallel
- This sounds like relatively easier to achieve as they can easily work with few content creators in this segment to publish content. But acquistion will be a big challenge. The purchase is dependent on parents so they need to break into parents minds first.
- pricing is an opportunity where hotstar can quickly turn around with repacking and communication
- Live gaming:- space taken up by any of the competitors. even slow start would give them a lead.
Recommendation:
I would recommend to look at option3 & 4 as both the option will help bring in new subscribers and compete with current players.
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