Netflix the American OTT service is coming to Mumbai and has double its investment in India to launch more than 1000 hours of original content. The firm CEO has announced that this new office in Mumbai will be as big as the one in Tokyo.
Netflix spokesman declared: “India is hugely important for us in the long term as it is one of the strongest internet markets and internet TV is the future over the next 10-20 years, given that linear TV will decline in viewing eventually. It is a great opportunity to get in at the very beginning of internet TV, which will rise in India as phone networks as well as international players like YouTube and Netflix do more on the internet in India.”
Even though Netflix is still late compared to its main competitors such as Hotstar or Voot. The american firm has 4.2 million subscribers while the others have respectively 63 and 13.2 million.
In order to achieve their objective Netflix has teamed up with Airtel, Videocon and Vodafone. But the biggest contract is with Reliance Jio an Indian telecommunication based company which in 6 month became one the most important operator in India with more than 300 million customers.
In the OTT market, it is known that content is king and Netflix is aware of this fact since it set aside a US$ 310 million fund in order to create original local content such as Sacred Games the first Indian original TV show.
Finally, the last problem in India other than already implanted competitors is the bandwidth weakness for all OTT players. Netflix spokesman declared on this subject: “Our adaptive streaming technology adjusts the picture quality on the fly to ensure the picture looks its best regardless of your download speeds. The way we encode our videos will enable viewers to eventually watch up to 25 hours of Netflix on just 2GB of data, and stream quality video at speeds as low as 200 Kbps”.