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Why Netflix Is Struggling In India

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Netflix has 137 million subscribers and a majority of them are international. But the streaming giant is still struggling to break into India, the world's second-largest internet market. CNBC's Alex Sherman explains why. Netflix is currently valued much higher than other media companies. Despite a share pullback in recent months from more than $400 to about $285, Netflix has a trailing price-to-earnings ratio of more than 100 and an enterprise value-to-EBITDA ratio of about 70. For comparison, Disney has a P/E ratio of about 14 and an EV-to-EBITDA ratio of about 11. Viacom's valuation ratios are both around 7. This gaudy valuation is largely predicated on its international growth forecast. Breaking into India is critical for the company to double or triple its subscribers over the next 10 to 15 years, as many analysts have estimated. But Netflix hasn't had an easy time spreading through India since it launched there in 2016. Faced with competition from local players and Amazon Prime Video, Netflix is facing an uncertain future in a country with more than 1.3 billion people. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Netflix Why Netflix Is Struggling In India
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Text Comments (3744)
G. ONE (3 days ago)
Because Netflix shows are Hinduphobic . We Indian love our religion. U Americans love money Only. 😡😡
Adi (5 days ago)
You foreigners keep on explaining all your failings in India using price as the sole discriminant factor. You're just going to keep on failing. You guys have lost the plot.
Akhil Chandra (6 days ago)
As pricey as in the USA and less content.
Saamarth Sethi (7 days ago)
Um it’s not
Data Grab (7 days ago)
*because we're poor country. We just pirate stuff off the net. Remember fast and furious 7? We set a record on that most pirated download of that movie in like ever. And that's with slow internet.*
Ishwar Singh (7 days ago)
Why would i pay for left leaning propaganda
Param Drall (7 days ago)
IPL live was watched by 19.7M people Live !!! 🙂 But Netflix like "we'll charge u $7 but still won't allow u to watch most of our stuff"
Dop amine (7 days ago)
Its actually the price if you talk about a large amount of consumers they should learn from amazon .They should realise the benefits they can get if they bring make changes to their prices
Ninad Mundhe (7 days ago)
As a Netflix subscriber, I still feel that Netflix has great content however it's not worth spending ₹ 650/- a month on it. When your nearest competitiors are charging ₹999/- per year
Akshay Das (7 days ago)
Reduce the price, that's it, whole issue gets solved.
Ashis Kar (8 days ago)
Frustrating price
Ramesh R (8 days ago)
I used both Amazon prime and Netflix. Amazon prime- lack of content, I have to wait for a month to get a new movie. Decided not to subscribe again. Netflix- used for a month and felt bored. I didn't found it interesting therefore i cancelled it. Finally using online web sites to watch new movies.
Silent tube (8 days ago)
Soumyakanti Chakraborty (8 days ago)
Netflix charges a lot of money in India but doesn't provide the full collection of shows and movies. Their US catalogue is a lot larger. In order to succeed in India, they must either reduce prices or provide the same content.
ayush Jain (8 days ago)
The same reason Apple is struggling ...price
TechnoFreak (8 days ago)
here in INDIA the biggest problem is not the price but actually is the CONTENT, quality of content is amazing but the QUANTITY really sucks, if compared to US and rest of the world, only 1/4th of the content is available to watch also paying 7-8th times more at the same time, which is horrendous!
It's me actually (8 days ago)
Is it so?? I didn't knew... I live it .. lost in space...eleven
George R (8 days ago)
Another thing this video should have mentioned as a side note, is who the owner of Star India (owner of Hotstar) is. Up until recently it was 20th Century Fox.... I'll give you no guesses as to which mousey company owns it now....... Empire DISNEY! Another reason why Netflix is going to struggle in this market!
Samara Weaving (8 days ago)
Indian people are poor thanks to the Government of India who is committing fraud and laundering money from India to offshore bank accounts.
theTRIOS (8 days ago)
It's not about the corruption and poverty the point is us indians have always been taught to make the best choice which is value for money and in Western countries since your GDP is already much more than ours per capita Western companies like Netflix think that the same cost is fair for us too even though for us that's expensive af . plus as long as we have a better option like hotstar and Amazon prime with good value for money we won't buy Netflix because we never go for brands we go for best option available.
Joydeep Nath (8 days ago)
I think 20th century fox owned hotstar has more investment than netflix in india. Thats why hotstar have more good content more cinemas more tv series like Prison Break or The X files or GOT.
Harshit Jain (8 days ago)
Netflix is good but quite expensive for our indian market..we dont spend 400 to 800rs just for movies or series.. we already have more options which gaves similar services in less than 100rs
Abhi ii (8 days ago)
It is costly and we don't get all the shows amazon hotstat othe indian streaming service cost between rs 1000- 1500 for a year and without the limitation of devices on which we can watch on the other hand Netflix single user is rs 500 per month we get only 3 months for price in which we get a year from othe other streaming apps
BRIGHT FAITH (8 days ago)
My only reason of not using Netflix is "I CAN'T AFFORD" 😑
JONNY CAGE (8 days ago)
No one is purchasing Netflix it's too expensive
Amit Mehta (8 days ago)
When you can torrent for free then why waste extra money for the subscription???
bigbrain457 (8 days ago)
Something, something, T Series...
Pickwick name (9 days ago)
rocky m (9 days ago)
Hotstar has GOT and all the latest English titles
Vedant Wani (9 days ago)
I will buy Netflix's membership if it has anime...
niranjan kumar (9 days ago)
Why should I spend 1000rs...on Netflix???I have tata sky dish...!!!
ZIN ALEXZENDER (8 days ago)
Tata sky sucks big time, I rather watch pornhub
FURQUAN AHMAD (9 days ago)
It's not price issue. We are paying the exact amount as Americans pay, but we are getting like 40 % of Content . Why's that ?
Archana Singh (9 days ago)
I torrent it
winki green (9 days ago)
People really don't have time to watch free movies in various app then how will they pay to see movies
Pramod Fatak (9 days ago)
Telegram app is enough Like If you know what I mean.
Vinay Tadapalli (7 days ago)
+Pramod Fatak Thanx brother..
Pramod Fatak (7 days ago)
+Vinay Tadapalli latest movies only, new Netflix movies, bollywood cinema , hindi hd cinema
Vinay Tadapalli (7 days ago)
Can u suggest some telegram channels?
ayush Jain (7 days ago)
Pramod Fatak how ?!
Pramod Fatak (8 days ago)
+ayush Jain yes
Aamir Razi (9 days ago)
Why the hell someone pay for premium service and again for the data it cost..... Don't know why whole world is being premiumed..... Plus not all good shows are host at same platform you need Netflix for sacred games, amazon for mirzapur and lots other
The Farce :D (9 days ago)
Because you can Netflix, but are not allowed to chill.
Untraveled (9 days ago)
First of all amazon prime and hotstar has 200% more content than Netflix has which they are giving it for 999 per year that's like a paisa a day! We would rather buy cable TV and spend the same 9000 bucks and get better content than buying Netflix! If they want a market in India then they should work on the pricing and bringing more and better content than prime and hotstar!
Rahul anand (9 days ago)
Patriotism we hate weastern culture
Srikar Komanduri (10 days ago)
Don't worry if Netflix is costly, we got 'em cracked - every Indian student 😜
Amarjit kumar (10 days ago)
Because its waste of time Also in india alt balaji Jio cinema and lots of stuff are there so its up to people to use or not
Sen 7 (10 days ago)
Don't let Netflix and other foreign companies rule India. Use " make in India"
Rohan Naik (10 days ago)
If Netflix want to win all they need is IPL cricket is religion .
John Doe (10 days ago)
Good old cable is still the best. 4$ per month for all the popular international channels, shows and movies. I can live without all the crap these streaming services produces
Editor's Choice Products (10 days ago)
Indians cannot afford Netflix. Financially and psychology 😭😭😭
AviaMahaNakhon (10 days ago)
why is everything struggling in India
Amardeep s pradeep (9 days ago)
Well not everything companies like apple and Netfix suffered but Xiomi, Microsoft,Huewie is a huge hit
SaHiL sharMa (11 days ago)
Hotstar owned by Disney now
Saniel Chavan (11 days ago)
I'm an Indian, and I think Netflix content is much more watchable than any other app, but Netflix is expensive than other apps, so people do watch Netflix's series, but by torrent 😕. And 80% indians don't have smart TV in their home, this is also one big point to not subscribing Netflix
Everything channel (11 days ago)
This year there were about 14 to 16 million watching the final of the Indian Premier League in hotstar.
Akshar Patel (11 days ago)
It's same how Hotstar cuts half of its content in USA, while paying more than india
kshitiz rimal (11 days ago)
Because Indians know how to use torrent?
A.A.Rooble K. (12 days ago)
7 $ is whole month grocery in india atleast half dolar may be fine
Agent 69 (9 days ago)
No a month grocery is like 15-20$
Shan Angare (9 days ago)
Lol wtf
Akshit Soni (12 days ago)
Because we have torrents
NIK TECH (12 days ago)
Truth is Indians are good with internet.. We know how to watch everything free.. 35 dollar for 6 gb internet in usa.. 5 dollar for More then 100 gb in India..
Shikhar J Dutta (12 days ago)
Only reason most people subscribed to Netflix was to watch Sacred games
The Wolverine (13 days ago)
Indians can watch most of the stuff on Netflix for free. Simples
Sanu Rawat (14 days ago)
Why don't u understand.... Ur service (shows) aren't good enough for the money u guys are asking.... Hotstar is leading because they stream daily soap shows, Cricket (the elephant in the house) and many more.....
Hitisha waghela (14 days ago)
Come on half of us have hard studies it takes time to study we are busy in giving exams not like u guys using calculators in exams we don't even pay attention to stupid Netflix
D K (14 days ago)
Well I discontinued after Netflix cancelling Marvel shows like Daredevil and Punisher. Now using prime and yes good ol torrent.
Sayandeep Poddar (15 days ago)
Just put INDIA in the title and views are like here we come
rohit dalal (15 days ago)
What about Khanflix?
Mahesh Guptha (16 days ago)
Torrents is the main reason
Sairam LP (16 days ago)
amal zuhair (16 days ago)
It’s pretty simple if you can watch all these shows for free why pay
Zeus (17 days ago)
The reasons are -> torrents & pubg
treeberry4 (19 days ago)
The price is so high. Whereas other portals aren't. Besides all of the content isn't available
Ranjan C (19 days ago)
Other than pricing, the quality of content is below that of HBOs, no frequent update with new contents, and not all contents of Netflix USA are streamed in India because of region-specific problem.
Amruta Mahajan (19 days ago)
I'll tell you why they're not working. One reason : Credit cards! The youth is used to Debit cards which is not available in Netflix's payment options. Majority of banks are left out. And also Netflix doesn't give the same range of shows in India which it does in US.
Amruta Mahajan (17 days ago)
+Maya lak read through. I said majority of the banks are not listed.
Maya lak (17 days ago)
Amruta Mahajan who told you.. debit card works fine..
ashna yasmin (20 days ago)
The one thing i liked about netflix was its awesome quality in engllish films.But, after it changed its reccommendations to hindi, i stopped watching it once and for all.
Mani N Sinha (21 days ago)
why should I pay simply If I can view all these in free through other sites.
Aishwarya Soni (21 days ago)
3:13 did she say Asia and India. What are Indians then?
Sayak Das (21 days ago)
Btw, which streaming service provide NFL in US?
IFFET MINERVA (21 days ago)
Indians have no time we are busy studying and if our parents caught us using phones instead of studying they take it away
Anonymous gaming (23 days ago)
Because appereantly everyone is playing PUBG
Neil Deep (24 days ago)
Indians don't appreciate serious, compelling stories. lolol
Prathap Poojari (24 days ago)
Netflix is way costly man ...
Ashu Tosh (24 days ago)
Young Indians Love Pubg more than anything else in the world,, and indian aunties and uncle are not interested in american tv series at all
manikandan t (24 days ago)
Netflix have to have a new Indian content team so far all the indian content have been degrading communal feminists agenda all such crap it maye sell in us not India keep your agenda and politics out you may have a chance
Ranveer Jaipuriyar (27 days ago)
Because we know how to use torrent. Enough said.
Mr perfectly Imperfect (27 days ago)
the main reason I know a guy who knows a guy who has subscription to netflix I will text u the username and password
# rahul (27 days ago)
Indian youths are too busy with civil service exam and x videos.
Saurabh Saha (27 days ago)
Content is an issue. That's why I am still thinking to take subscription..... even today.
laveenr (28 days ago)
90% indians do piracy and nobody wants to pay for home media only the rich will do that too less percentage.
Gangubai Gabbur (28 days ago)
Hotstar rules only bcoz of GOT now
shiny sonal (28 days ago)
Netflix : I have sacred games Hotstar : hold my beer, watch got
Sanjay Negi (8 days ago)
Got is overhyped
Srikar Komanduri (10 days ago)
What's the shinyist thing about you?
The Maverick! (10 days ago)
Hotstar doesn't drink beer.
Atul Chauhan (28 days ago)
Indians youth have VPN and bittorrent and ton of free 4G data
Gamer 007 (28 days ago)
T*op tv will gonna be a largest streaming service, streaming over live 6000+ channels (Indian and foreign channels), upto 7 days of catch up program , and that's not it, it includes full hotstar premium and popular Netflix and English series, All of this for free(expect ads).
Dr. Vansh (28 days ago)
I use filmysaver.blogspot.com
Tom Hardy (29 days ago)
It's not working in India because kids there are chasing dreams rather than switching from series to another series.
ab1 ek (29 days ago)
Its not price .. we get to see ipl in hotstar.. also let jio broadband come .netflix will boom
Venkatesh Babu Ponnuchamy (29 days ago)
Poor people are charged like as though it is USA. Nobody gets paid what an average lower income group gets paid in USA. Why usually people compete USA. They don't understand what is India and Africa etc. Unwanted people rule the industry in India without knowledge and that's India. They think India is USA. Even the shops and they charge so high for even a tissue paper.
Mr. Explorer (29 days ago)
Netflix is too costly if you calculate in INR. You should cut the cost like Amazon Prime.
Mohammed Ziyad (29 days ago)
In India we have tamil Rockers . All movies available even b4 release 😂
Pallav Sarkar (1 month ago)
2:01 Look at bat guys... 😂😂😂🤣🤣
Abhishek Sathe (1 month ago)
Most of the Indian youth who would watch Netflix are busy cracking competitive exams or is clogged up in engineering assignments. LMAO
Anshuman. GG (1 month ago)
In India we don't Netflix and chill that's why???
Google User (1 month ago)
Netflix is yet another Apple in India. One-size-fits-all business approach has been their downfall. You get a year subscription of Hotstar or Amazon Prime at the cost of 2 months of Netfix. That's how pricey it is!! Context matters.
Kumar Ramakrishnan (1 month ago)
Calm down.. Netflix is doing fine.. Don't worry about it.. And Netflix subscribers are loving it.. Looks like all the negative comments are from people who doesn't have Netflix 😂
Batman_94 (1 month ago)
i bought amazon prime mainly for shopping and the streaming service is just an added bonus
RickyRisha410 (1 month ago)
Only one solution to rise Netflix market and that is: REDUCE PRICE
Akshat Mathur (1 month ago)
Amazon Prime Video is booming in India !