The world’s largest online TV network, Netflix is having its tough days in India as it competes with around 30 OTT (over-the-top) original online video and entertainment distribution platforms including Amazon Prime and Hotstar.
Netflix and Amazons' battle for the top spot is set to intensify with Amazon’s subscriber base outrunning that of Netflix’s in India and several other markets.
Data from global information company IHS Markit revealed that within a year of its launch, Amazon Prime Video is slightly ahead of Netflix in India, with about 10% of market share in 2017. Although Netflix continues to be the global leader in online video streaming, Germany and Japan are the other two markets, where Amazon's subscriber base has surpassed that of Netflix's.
Pricing has been the key factor for driving Amazon Prime and Prime Video in India, said analysts. "Initially, Amazon Prime was the same price per year (Rs 499) as the lowest tier Netflix subscription cost per month (Rs 500)," said the IHS Markit spokesperson. "Although this has now doubled to Rs 999 per year for Amazon, it is still a significant discount, considering a service that offers more than just online video."
However, with its streaming services across 190 countries, Netflix continues to witness huge jumps across the globe due to a long line of its original content starring Brad Pitt to Will Smith. Last month, Netflix joined the $100 Bn club companies.
For Amazon Prime Video, India is a key market and in early 2017, Amazon stated that it would invest $300 million for creating original content, a segment, which analysts consider an Achilles heel in Netflix's portfolio. Amazon Prime has already joined hands with leading Comedians, sketch and film artists for producing India-exclusive contents.