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> It's hard to justify how (comparatively) expensive Netflix is in India I mean Zee is pooped out. Disney+Hotstar lost like 12 million customers and posting bi

by geodel 3y ago

> It's hard to justify how (comparatively) expensive Netflix is in India I mean Zee is pooped out. Disney+Hotstar lost like 12 million customers and posting big losses. Sony, Disney shut shops in India. Seems YRF is the one making money following Hollywood lead in creating their own Spy universe. Groups like Reliance maybe the only one to survive. For them entertainment expense is incidental in other larger considerations. So others services are cheaper but it is not like they are or will likely make money. > It seems they are trying to change this by tying up with Red Chili, Viacom18, and Balaji, Yeah, they can add tons of Indian style TV shows with daily 10 min snippet + 20 min ads specially with ad supported version now available in more and more places. I think it can workout well from cost per content hours perspective. But movie economics is impossible specially for big budget movies with top stars. Compare to US, Indian movies spend ~5 times more money on actors out of total movie budget. Something gotta change with movie budgets, viewers preferences, actor payments etc.

alephnerd 3y ago
> For them entertainment expense is incidental in other larger considerations. So others services are cheaper but it is not like they are or will likely make money Yep. But the other difference too is the fact that regional media has become much more popular as Tier 2/3/4 metros become better off. This is a major differentiator as local language players (who tend to work with Jio or Amazon, or make their own platforms like Hoichoi for Bangla or Aha for Telugu) will bundle and price at a lower rate. Basically, regional production companies undercut platforms by building their own niche platforms to act as a bundle with a competitively priced Jio membership. Companies like Netflix and Disney Star simply can't compete with that as they never had relationships with regional producers compared to Amazon or Reliance. > movie economics is impossible specially for big budget movies with top stars Agreed, but the companies above also create OTT shows as well now, but have drastically fallen behind due to lack of regionalization. Netflix+Hotstar just can't compete when a Jio, Amazon Prime, and regional OTT (Aha, Hoichoi, Koode) bundle comes out to around the same price as a Netflix India membership and gives much more content, prime delivery, and 5G+Fiber Internet It's not that Indians are cheap, it's moreso the fact that price expectations are lower as conglomerates are using OTT/Entertainment as a loss leader to expand much higher margin industries like Telecom or ECommerce
- geodel 3y ago
  > Netflix+Hotstar just can't compete when a Jio, Amazon Prime, and regional OTT (Aha, Hoichoi, Koode) bundle comes out to around the same price as a Netflix India membership and gives much more content. I have a feeling that in few years instead of doing what others are doing better Netflix may drastically cut down Indian division and just keep their exclusive shows/ movies with high price and low market share.
  - alephnerd 3y ago
    Netflix needs India (and ASEAN) as those are their only growth markets left, but they entered both markets way too late and failed to build the right partnerships. > Netflix may drastically cut down Indian division It's already extremely barebones. Netflix India originals are just Netflix branding on previously produced content by the production companies I mentioned earlier. It's the same with Netflix Anime (I think it's rebranded Tokyo MX and TV Asahi content) and Netflix KDramas (JTBC - who also has a stake in TV Asahi and Tokyo MX - and CJ Group).
  - wolverine876 3y ago
    Maybe they'll buy the local company.
    - alephnerd 3y ago
      Naw, the RoI isn't there for Netflix as there are too many companies, and Reliance or Essel Group would swoop in anyhow.
ciabattabread 3y ago
> Disney+Hotstar lost like 12 million customers and posting big losses. Wasn't that because they lost a contract to broadcast cricket? [1] [1] https://deadline.com/2023/08/disney-ipl-free-cricket-india-streaming-wars-1235530149/ https://deadline.com/2023/08/disney-ipl-free-cricket-india-s...
- geodel 3y ago
  Yes it is. It just shows there are far fewer users of streaming service for non-sport entertainment.

by geodel 3y ago

alephnerd 3y ago

> For them entertainment expense is incidental in other larger considerations. So others services are cheaper but it is not like they are or will likely make money Yep. But the other difference too is the fact that regional media has become much more popular as Tier 2/3/4 metros become better off. This is a major differentiator as local language players (who tend to work with Jio or Amazon, or make their own platforms like Hoichoi for Bangla or Aha for Telugu) will bundle and price at a lower rate. Basically, regional production companies undercut platforms by building their own niche platforms to act as a bundle with a competitively priced Jio membership. Companies like Netflix and Disney Star simply can't compete with that as they never had relationships with regional producers compared to Amazon or Reliance. > movie economics is impossible specially for big budget movies with top stars Agreed, but the companies above also create OTT shows as well now, but have drastically fallen behind due to lack of regionalization. Netflix+Hotstar just can't compete when a Jio, Amazon Prime, and regional OTT (Aha, Hoichoi, Koode) bundle comes out to around the same price as a Netflix India membership and gives much more content, prime delivery, and 5G+Fiber Internet It's not that Indians are cheap, it's moreso the fact that price expectations are lower as conglomerates are using OTT/Entertainment as a loss leader to expand much higher margin industries like Telecom or ECommerce

geodel 3y ago
> Netflix+Hotstar just can't compete when a Jio, Amazon Prime, and regional OTT (Aha, Hoichoi, Koode) bundle comes out to around the same price as a Netflix India membership and gives much more content. I have a feeling that in few years instead of doing what others are doing better Netflix may drastically cut down Indian division and just keep their exclusive shows/ movies with high price and low market share.
- alephnerd 3y ago
  Netflix needs India (and ASEAN) as those are their only growth markets left, but they entered both markets way too late and failed to build the right partnerships. > Netflix may drastically cut down Indian division It's already extremely barebones. Netflix India originals are just Netflix branding on previously produced content by the production companies I mentioned earlier. It's the same with Netflix Anime (I think it's rebranded Tokyo MX and TV Asahi content) and Netflix KDramas (JTBC - who also has a stake in TV Asahi and Tokyo MX - and CJ Group).
- wolverine876 3y ago
  Maybe they'll buy the local company.
  - alephnerd 3y ago
    Naw, the RoI isn't there for Netflix as there are too many companies, and Reliance or Essel Group would swoop in anyhow.

ciabattabread 3y ago

> Disney+Hotstar lost like 12 million customers and posting big losses. Wasn't that because they lost a contract to broadcast cricket? [1] [1] https://deadline.com/2023/08/disney-ipl-free-cricket-india-streaming-wars-1235530149/ https://deadline.com/2023/08/disney-ipl-free-cricket-india-s...

geodel 3y ago
Yes it is. It just shows there are far fewer users of streaming service for non-sport entertainment.