Netflix's Subscribers in India Lag behind Rivals despite Price Cuts

Bernstein said Netflix's slower growth in India was due to a lack of local content.

Netflix has not succeeded in growing its business in India, despite lowering subscription costs in the country, according to analysts at AllianceBernstein. The streaming giant has 6.5 million subscribers in India, compared with 20 million for Amazon Prime Video and over 40 million for Disney+ Hotstar. Bernstein said Netflix's slower growth in India was due to a lack of local content. Bernstein also suggested that, in emerging markets, value is more to do with the cost of linear TV or internet video than a comparison with other streaming services, adding that India is likely to be YouTube's largest market.

 Hotstar dominates thanks to its offering of cricket streams, which draw millions of live viewers. Netflix has continued to pursue expansion in India, with deals such as bundling with Jio Platforms, the country's largest telecom operator. However, AllianceBernstein's analysts suggest that Netflix must offer a higher density of local-language content to compete in the Indian market. Netflix's global growth slowed in Q2 after it predicted earlier in the year that it would add 7 million new subscribers. The firm's appetite for content spending is reportedly not matched by the appetite of its investors, prompting the streamer to reduce spending on licensed content.