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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 (4158)
Deven Wadhwa (1 day ago)
Netflix is bound to go further down.
Heath Ledger (3 days ago)
Netflix is trying to beat hotstar in the regional content department (which it's obviously never going to).They should understand why Indians wanted Netflix in the first place-To watch English content, that's it . But Netflix India is missing more than half of the content available in the US, instead they are focusing on the regional content.And anyway let's face it price isnt the issue,it's just an excuse to use torrent.So I'll be better if Netflix does something about the tons of quality shows that Indians are missing, instead of trying to beat hotstar at it's own game
Mandar Deshmukh (4 days ago)
I think piracy is also lowering their growth...because every Netfix serirs is available on torrent
Rakesh Reddy (5 days ago)
At 1:20 it's not JoiCinema it's JioCinema
lalla jha (5 days ago)
Indians mostly pirate movies and tv shows
J G (7 days ago)
One valid reason is the Hinduphobic content on Netflix. It will turn off the majority from the service. Don't demonize Hindu culture and don't incorrectly portray India in such a negative light. Hiding behind the excuse that it is fiction is not good enough.
Khristina индус (10 days ago)
Netflix is loosing in India! Thats all because Netflix is hinduphobic
Sandeep Jha (11 days ago)
Make a video on why CNBC pretends to know everything when they don't. Netflix india is not same as Netflix us and they don't adjust their pricing according to purchasing power parity
Dr.Ross geller (12 days ago)
Dont need to stress.... 1:46 this is the only reason 😂😂😂 And ofcource IPL too but price matters the most.... Because Indian economy is drowning from top to bottom since 2015
shàaz Ali (12 days ago)
Why pay when you have torrent
helloCREEP (13 days ago)
I mean after making series' like 'Ghoul' and 'Leila', what else do they expect?
Bhaarat Go! (13 days ago)
Hotstar and other platforms have better content. Hotstar is the king because it streams live sport matches
TubeBrasil (15 days ago)
Maybe Hindi people dont lke garbage like Lucifer and witchcraft Netflix shows
Sarthak Jain (15 days ago)
Piracy is big issue
JK PALAI (17 days ago)
Netflix is targeting Hindu sentiment content which is not acceptable by85 percentages Hindus.So it's face major fallout.Playing with Hindu sentiment will washout accompany what Large it may be.
Das.angshuman (17 days ago)
Nobody talks about piracy. I dont know why. Before these streaming services came to india, our VOD was a pirated disk of the latest movies from local store, which still operate to this day. And with more internet penetration in india, torrent downloads are also more and more common, thsts why streaming services struggle in india. Hotstar donot struggle because it streams cricket, which is the heart and soul of a majority of indians...
luis gamez (17 days ago)
I'm sorry for being childish but he said (PENETRATION) jjaajajaja
Sakthi Kumaran (18 days ago)
netflix hasnt produced ANY single "tamil language" orginal..... an industry only second behind bollywood..... when they start innovating interesting flicks in local languages they will grow in india.... india is not just north india, hindi and bollywood alone...
Sakthi Kumaran (18 days ago)
netflix dosent respect the regional contents in india...... for them india is only hindi and bollywood only..... they have never produced a single regional content like in tamil, malayalam, or telugu language.....
john hand (22 days ago)
0:17 does the map shows netflix is available in north korea?
Kunal Chatterjee (22 days ago)
Also, HBO and Showtime broadcasting rights in India have been bought by Star
RH OD (26 days ago)
Most of the Indians can't even afford it that's the main reason.Also the piracy is rampant for all the content available in Netflix.
Big Josh (29 days ago)
Make a video called "Why Xbox failed in Japan"
Atipat12 (1 month ago)
🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
Atipat12 (1 month ago)
HAHAHA
trebledc (1 month ago)
Its always the price, if you want to succeed in this type of countries.
Anuranan Saha (1 month ago)
Cmon let's be honest, we all know the truth that. In reality- Netflix subscription! 😫 It's too expensive. But deep within our heart- ere BHai mod app aur tea tv he na. Chala lunga
Army. this thing is great ! Bison (1 month ago)
Torrent. Torrent
Dedy zee (1 month ago)
India channeling money for the United States is very poor people's lives ......... India is not as beautiful as Bollywood
Steven H Wang (1 month ago)
Why Netflix is failing in India: Cricket
The God (1 month ago)
Torrent
Eyelash Says (1 month ago)
as a person that ahs an Indian mom and has been to India several times its because there is almost no Indian content and most Indians love Bollywood
JoJo Gaming (1 month ago)
I don't think so I have Netflix and my lots of friends too cause its the only which hai international content I'm Indian I hate Indian streaming services I never had then expect prime and Netflix
Nerd Taku (1 month ago)
Why Netflix is struggling in india? There is a very simple answer No one in india is going to buy your service if you are charge the same price as the US. Amazon prime understood that and Adjusted their price on the basis of Indian Currency and what is considered Expensive in india
EBIN C.B (1 month ago)
If you get a cracked version....why should I buy it..?
sumesh ps (1 month ago)
Indian people like torrent . We can get everything free in torrent . Then why we need to pay for Netflix or Amazon or hotstar. Hotstar survives the race because they provide live streaming of cricket matches And second position is Sony LIV . They also survive due to same reason .
Sargam Siddiq (1 month ago)
India has hotstar. they offre more movies than netflix In Indiafor almost the same price
Girishkumar Kumaran (1 month ago)
The answer is simple. Netflix is nonsense.
SHAKALAKA BOOMBOOM (1 month ago)
I didn't knew north korea had Netflix
VRH Khan (1 month ago)
One word answer : Torrent
Vahid Minglani (1 month ago)
This came into my feed now 😤😤 Netflix in india is now @199rs or 3$ per month
Amy Am (1 month ago)
Well mostly because Netflix is a leftist propaganda channel just like cnbc which shows India(Hindus) in a bad light. You don’t offend the majority citizens and expect to succeed . Duh !
americanstud1 (1 month ago)
Half the shows and movies that are available in Netflix accounts of other countries isn't available in India.
Shubham Rai (1 month ago)
I love Netflix's but can't subscribe because my Rupay Card not acceptable by Netflix
Shubham Rai (1 month ago)
Big problems is ,,,, subscribe ,Many people does not subscribe Netflix's because it not support Rupay Card. It's support to only VISA or MASTER CARD . A lots of Indian people does not have VISA or MASTER CARD.
M B (1 month ago)
torrents?? i guess
Vinod Raghavan (1 month ago)
Because Netflix is the Voice for Anti Hindu & AntiNational SJWs👹
Rohit (1 month ago)
Torrent
A_21_N (1 month ago)
Netflix is on its way to spread anti-national agenda, it will succum to its end very soon!!!
starman lOOP (1 month ago)
Their content is hinduphobia and prices are too much high.
Shaz A DOT (1 month ago)
Indians like trash tv like star plus and bollywood. Leave them to it.
Aardwark Gannet (1 month ago)
Indian are busy in godi media of Hindu Muslim debate
inspiration is you (1 month ago)
I'm India and don't have time to buy and watch dramas...I watch what ever is free on AIRTELTV/JIOTV....THEY ARE offering good stuff though....why would. A college student will buy neflex add on when he can have free acces provided by his network as jio and other.... it's not language English is quite easier for today's youth .....NET FLIX HAD YO JOIN NETWORK PROVDER THAT only way to survive in India..!
Gil Dazbog (1 month ago)
It's because of bobs and vagene
Janak Lal Markam (1 month ago)
Keep it up
Its me Ceo (1 month ago)
Netflix is complete garbage
Identity Secret (1 month ago)
GOD BLESS TORRENTS LOVE FROM PAKISTAN ❤️😂
Janak Lal Markam (1 month ago)
One question does pak have Netflix?
K M (1 month ago)
Screw CNBC! (((Globalist))) neoliberal trash!
Sooraj Singh (1 month ago)
Why would I pay 800/month to Netflix when I have hotstar for 1000/month.....
Cma Ela (1 month ago)
Becoz we have sun TV Vijay TV for serials 🤣🤣🤣🤣🤣🤣🤣🤣🤣
Janak Lal Markam (1 month ago)
South channel s
Aryan Deka (1 month ago)
Netflix faild in india Because of anti hindu agenda....
ma ananthrao (1 month ago)
Because #netflix #india is #antihindu that's why #americanwhore 🖕🖕👎👎
neelkanth kalkeri (1 month ago)
Why pubg is struggling in US 🤣
Ishaan khan (1 month ago)
According to this channel every American company is struggling in India...?
Rahul (1 month ago)
Well in india 1 account is enough for the entire population
Timor_ Devil (1 month ago)
Who is here after ₹199 subscription?
BIG POPA PUM (1 month ago)
Coz Hotsar offers much cheaper And AIRTEL TV is free
akshay jore (1 month ago)
Above 80 percent in india dont speak or understand English why they subscribe ....bcoz almost 90 percent content is in English
rohit gupta (1 month ago)
BC 650 rps month ka kon dega cable ka bill bhi itne nhi aata hai waise me airtel ki taraf se free netflix & amazon prime ka maza le raha hu
Abhinav 12 (1 month ago)
CNBC should be named as "struggling in India".... EVEN UR STRUGGLING🤣🤣😂😂
Vodnala Srinivas (1 month ago)
Why do we pay for something ..Which we can get in online for free.
le sifvar sulackshan (1 month ago)
Why would you buy when you can stream it for free 😂🤦🏽‍♂️
mimi menon (1 month ago)
1. Price 2. Lack of local content 3. Poor marketing
Prince v (1 month ago)
Netflix sucks!cnbc sucks!bbc sucks!😑
kali sunil (1 month ago)
One tip for Netflix to get number 1 in India "Just buy IPL digital rights you will automatically become top"
Super Saiyan (1 month ago)
TORRENT
Shadman Ahmed (1 month ago)
We use torrents u dumbfucks
Gayatri saha halder (1 month ago)
Make a video on - Why CNBC is struggling in India?
La Vie En Rose (1 day ago)
Indians are too poor to afford Netflix
Lalit Patil (2 days ago)
CNBC is struggling in India?
priya priya (1 month ago)
Hahahaha
Amy Am (1 month ago)
👍😂
RoadRash NT (1 month ago)
Netflix fan ?!🤦🤣🤣🤣
David Kuriakose (1 month ago)
Netflix to expensive
Beam P. (1 month ago)
because indians are tooo poor
Albin George (1 month ago)
I'm from India. For me pricing is the only reason why I don't choose Netflix over others. They have to consider the Indian economy before pricing. Because 800 rupees per month is a lot for an average Indian compared to others. And we don't get half the content people in US gets. So why bother? Slash the price or there's no surviving here.
Vikas s (1 month ago)
If you not understanding the Indian prospective how can you expect the market Your targeting segment is absolutely strong , when it comes to the pricing for 1 month 199 quite difficult According to my prospective
gossip media tv (1 month ago)
Lol for jio users hot star is free
gossip media tv (1 month ago)
Netflex subsidied the charges to rs 199 per month only in India for mobile ist that cool thing..?
Niraj Sahadeo Chaudhari (1 month ago)
Main problem is piracy I have seen people watching sacred games from online links..
karthi Kevin (1 month ago)
I believe most people using Netflix is for their originals and and foreign tv shows , and if they keep the pricing competitive then a lot of people would join in, like most people use Netflix in phones only so may be bring a special offer of some kind for this , right now it's way to much price
AnifleX (1 month ago)
Advice Indian serials Add them Because the 70s kids likes to watch crap only
Karthikeyan Jayachandran (1 month ago)
Chinese businesses understands Indian market better than Americans. E.g. mobiles.
Karthikeyan Jayachandran (1 month ago)
Netflix is 6000 rs per year (minimum, no HD), Amazon is 999 (with HD). Which one will be picked? Common sense.
Deepa Lall (1 month ago)
Netflix, your shows and movies collection sucks!! Bring more quality shows and movies and we will see.
Suryakanta Biswal (1 month ago)
Netflix is shown against our culture in TV show
Rohan Bagade (1 month ago)
CNBC : Netflix Is Struggling Sacred Games: Am I A Joke To You....
Akash Singh (1 month ago)
Netflix faild in india Because of anti hindu agenda....
Pranta Biswas (1 month ago)
Torrent : wtf are you guys talking about ?!
Rolf Nazareth (1 month ago)
I have both but amazon is much more reasonable coz you pay for a year and forget it
Rolf Nazareth (1 month ago)
Says who?
Aratrik Ghosh (2 months ago)
Because netflix is missing the trick by charging too much in india you can't earn maximum profit by not asking for high price but for low price you can maximum profit for example you're making a profit of 100 but only 10 are buying it and the profit is 1000 but in india if you're profit is maybe just 10 but if 1000 are buying it you will have a profit of 10000 much more than 1000 in india you have to go for minimum profit if you want maximum profit 800 rs is too much even in cable TV we pay 450 but if you ask for 150 you will have less profit per person but more people will buy it and ultimately you will earn huge profits so netflix has to understand this trick you can't be successful in india by charging too much look at airtel how jio crushed them
Kunal Patra (2 months ago)
Because. The channel video series are agnest hindi culture. The reaction of fail
LEGEND_OF_THUNDER MSLMKMB (1 month ago)
Intentionally commenting like an idiot in screwed up english so people will think indians are dumb. Just get over those old tricks. That has nothing to do with our culture like clothes like(shirts and jeans)
Satya Pratap Nayak (2 months ago)
Add india and cricket Content to Netflix and Amazon prime...thn see ..the ...magic..😂😝😝😝😂🤣
Arjun Raman (2 months ago)
We have telegram😂😂
Vaibhav M (2 months ago)
It is NOTHING but pricing issue. Indian audience loves netflix content. Price differently and you have a deal with India! Hotstar is amazing value for money. Go and compete with that
Code Lover (2 months ago)
Netflix, Starbucks,Apple .. Pay some exorbitant amount to get a not so great experience. The price of the content can't be ₹800 a month. It should not exceed more than ₹100.
Shikha Sharma (2 months ago)
We don't have television at home. I used to watch discovery and science channel documentaries
LEGEND_OF_THUNDER MSLMKMB (1 month ago)
Yes sis