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 $285, Netflix has a trailing price-to-earnings ratio of more than 100 and an enterprise value-to-EBITDA ratio of about 70. For comparison, Disney has a P/E ratio of about 14 and an EV-to-EBITDA ratio of about 11. Viacom's valuation ratios are both around 7.
This gaudy valuation is largely predicated on its international growth forecast. Breaking into India is critical for the company to double or triple its subscribers over the next 10 to 15 years, as many analysts have estimated. But Netflix hasn't had an easy time spreading through India since it launched there in 2016. Faced with competition from local players and Amazon Prime Video, Netflix is facing an uncertain future in a country with more than 1.3 billion people.
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Why Netflix Is Struggling In India
🤣🤣🤣 Average Indian starting salary is less than 200 usd.. from this they have to spend on 3 months data pack 7$ house rent 30$ groceries for a month it costs around 15$ TV ERC 3$ E-bill and water bill around 3$ bike fuel cost per month is 15$ outdoor expenses around 10$ per month ...
and so on.. only for bachelor's ..if they are family nothing to say 🤣🤣
jk44 v2 (1 day ago)
First movie when they launched in india was called "Lust Stories" This clearly shows the direction they are headed to.
Harsh Kumar (2 days ago)
My mom usually likes Dhum tana tana Dhum type shows !! 😕
And for me ...I torrent it !😁
LunaTwi01 (2 days ago)
I think Japan too and they embrace physical media like no one else.
Lobsang John (2 days ago)
If Netflix want success in India than so easy and so simple... just.....
Sha Lo (2 days ago)
Cause it sucks?
Parth (2 days ago)
of course it would struggle in india , if the shows like hassan minaj does some biased shows on netflix of our country
RK & L (3 days ago)
In India main problem with Netflix is the payment method . Most Indians doesn't have credit or debit card that support international transaction.
Blue Squirtle (5 days ago)
It's a third world shithole, of course no one can afford it.
Certified Chutiya (14 hours ago)
What an uneducated comment
Ash Mohd (6 days ago)
Well, Netflix is not allowed in my country.
yolo 55 (7 days ago)
Ok,wait I use Netflix
Rahul Sharma (12 days ago)
Let me make it clear to everyone. Hotstar is an Indian App. Netflix is foreign. They will never beat the latter in India.
Anupam Mahato (16 days ago)
Muzafar Ali (17 days ago)
We take care of the bills rather than the 'chill' factor 😅😂However, it is failing because of the lack of content that's actually available. 😭
B Bom (17 days ago)
Yes Netflix is very expensive but it has become a staple in my household, they need to reduce prices
Sourish Saha (18 days ago)
India is the best
fahad muhammed (19 days ago)
They have very less collections of movies in Netflix
Paras Kumar (21 days ago)
Why is netflix not allowed in china🤔🤔🤔
Gabriel Moreira (25 days ago)
Why GM is strugle in the World?
Anju Rustagi (26 days ago)
Or you can pirate it.
jeetu xx (26 days ago)
why are you pushing things on us
Virginia Gordon (24 days ago)
They want money
Dimple Maher (26 days ago)
we don't want you to expand stay in the USA lol, India and China are good... we need Indian companies to prosper and succeed more
P R (1 month ago)
It is the price
Santhosha Reddy (1 month ago)
Raju (1 month ago)
2SaucyUtuber Vlogs (1 month ago)
Why does every American company struggle in India?
Samya Som (1 month ago)
By the end of 2019 Baahubali's webseries prequel will be released on netflix. "Baahubali before the beginning". After that Indian subscribers will increase by leaps and bounds. Mark my word.
aishwarya sen (1 month ago)
Just cut the monthly price from 500 rupees to 100 rupees and you’ll see people from every section of India use Netflix.
Kranti gouripur (1 month ago)
Coz they have to play indian shows with indian glamour
Entrepreneel (1 month ago)
As an average Indian I could pay 30$/year for netflix. If its more than that. No one will buy it because india is a land of middle class people. And Middle class people who earn 400$ month can afford that.
Cool Dude (1 month ago)
Because Netflix is trash!
rahul tiwari (1 month ago)
it has only been 2 t 3 yrs.give it 5 more yrs it wd be lit
UnrealGalaxy (1 month ago)
why is Netflix struggling in India? because of T series.
Vardaan Sharma (1 month ago)
They can't find a great video of India.
Love love (1 month ago)
Ok YouTube I've watched it. Are you happy now? 😑
Shivraj Roy (1 month ago)
Who says that Netflix is failling when sacred games came people went mad for it so they downloaded it from torrent
Cliff J (1 month ago)
Netflix doesn't really care about the Indian consumer...there are no payment options other than debit and credit card...no payment through ewallet or netbanking...even no gift card payment option... even though I approached their customer service several times, there was no solution... I also tweeted the CEO Reed Hastings about this...but does he really bother?
Just Saying (1 month ago)
Torrent wins in india
Vinali (1 month ago)
You should offer soap operas Netflix. Staple of every Indian out there.
Rahul Kumar (1 month ago)
For me its pricing. We are paid 1/6 of what Americans are paid for the same task and we are supposed to pay almost the same amount of netflix? Well, excuse me.
Malini Komang (1 month ago)
everything seems strugling in india
aditya kumar (1 month ago)
Prime 999 a year
Netflix 900 a month
Elton Menezes (1 month ago)
I like Netflix US and I need a VPN ! Netflix doesnt understand that there are people in India that don't watch any indian content and only US programs
Ethan Almeida (1 month ago)
Im indian and i have netflix. Most of these people cant afford it
Rahul Kumar (1 month ago)
I can afford it but I have not even signed up for free month. Its not about whether someone can afford it or not, its more about whether the pricing is justifiable. Well, In US cable cost around $80/month, here its about 10$ per month. So make the ratio same and I'll use netflix. (that would make it like $1.25/month).
JohnYsf (1 month ago)
Because we Have Hooq Awesome channel and cheap too
William Francis (1 month ago)
How is it hard to believe that the majority is international
Super Mapping (1 month ago)
Netflix also has a terrible selection of american shows in india, so its not even practical for that
Jennifer Bai (1 month ago)
You guys are so lucky to watch Netfix and take that for granted... we Chinese have to buy a very rare VPN to watch it
Vikas Agarwal (1 month ago)
keep making shows like sacred games it would achieve success in no time.
Blake Harrell (1 month ago)
Damn every time I get on YouTube I always see a “Why ____ failed in India” lmaooo
athoiba ef (1 month ago)
Who needs Netflix when we have torrent
Alve Khan (1 month ago)
I use Netflix..... From Bangladesh
Hey hey (1 month ago)
But there are many Bollywood movies on Netflix lol,
ellyana 1458 (1 month ago)
buggieboi1988 (1 month ago)
Netflix is too expensive and the content is really bad for that price.
shumi jain (1 month ago)
Netflix is quite popular here
Teh Lai Chwee (1 month ago)
Because theres tseries, isnt that obvious?
Dude Augustus (1 month ago)
The Issue is not the price.
Issue is that we pay the same price as US customers but don't get even half their shows. Netflix's regional library sucks. & it is not willing to make its huge library of shows from other countries available in India. The main reason people were excited about Netflix's arrival in India was because we wanted to watch quality content from other countries. They failed their customers.
Nesh What? (1 month ago)
I am a big fan of Netflix and don't mind paying 7 dollars a month because it is worth it. I don't like watch those cringey Indian serials.
Bansaidnes V2 (1 month ago)
Everything is struggling in India
Beymasters (1 month ago)
Hotstar takes the rights of major shows in english and allow you to stream for 199 rupees
Kenja no Ishi (1 month ago)
Hmmm, so Netflix basically charges the same as US customers but get half the package?
*bob and vagane* intensifies
timepickle (1 month ago)
Idiots. Just introduce an internet banking or debit card payment system. Indians hate credit cards and they're not going take a credit card service just to pay for Netflix.
ANIK SINHA (2 months ago)
We have sharukh Khan, amir Khan. We don't need Netflix 😊😊😊😊
Samuel Adams (2 months ago)
Indians don’t need Netflix to chill. Lol
Tridip Chetry (2 months ago)
This is because We(indianyouth) are busy cracking Jee mains and NEET:-)
yuvraj _1 (2 months ago)
Netflix in India don't offer popular TV shows that it offers in other markets.
For a very general instance, Indian Netflix don't have F.R.I.E.N.D.S in it's streaming list!
Prakhar Gupta (2 months ago)
Netflix start producing bigg boss and see ur revenue
Wobbly Bobbly (2 months ago)
Not shocked, rudimentary hygiene, non consumption of bovine waste and private defecation struggle in Hind-poo-stan.
Geetesh Rana (2 months ago)
hotstar is best
Paul Pinto (2 months ago)
Price and the content catalogue is the main reason. How difficult is that ?
Northern Light (2 months ago)
There are so many content to watch on internet these days...that much of subrecption free... really
Moin Khan (2 months ago)
Internet speed & Price are still issues in india. Even Jio daily data is not enough to watch the Netflix HD episodes. Average earning Indian guy like me who hardly spent on internet data cannot even think to buy Netflix monthly ₹500 plan.
Rocket Raccoon (2 months ago)
Amazon Prime is slacking too. They took down a lot of shows and those shows are now on Netflix.
Xylex 4500 (2 months ago)
It's because of t series
Ankit Yadav (2 months ago)
Put the world one side and INDIA alone on other, that's how much INDIA is complicated for others.
Farhan Rahman (2 months ago)
Netflix won't work in India
Wolfy wolf (2 months ago)
I use fmovies ...
Pro Cars (2 months ago)
Look where Netflix is trying to succeed? In bootleg paradise, home of the scammers and pride of the hacking fleet
S AKASH (2 months ago)
Amazon prime took over - it's simple
Sandeep Tiwari (2 months ago)
If u stop bashing Hindu culture on Netflix there are chances to rise.
caitlyn who r u (2 months ago)
It's because everything is pirated there LMAO
Adam Brooks (2 months ago)
Raptorex History (2 months ago)
I prefer primevideo too as it provides so many benefits like fast delivery etc. Netflix shows are good, but it is too expensive. i feel hotstar isn't very good
Tom Chan (2 months ago)
0:43 You said China but you showed Hong Kong.
CMONCMON007 (2 months ago)
Support made in India. The Americans are making enough money already
Neethu U (2 months ago)
I have netflix and amazon prime and i gave up hotstar(most of its content is hindi serials). But i have to say that Amazon Prime is cheaper than Netflix.
CSR 2 Jr (2 months ago)
1st reason : price
2nd reason : an episode of 40 mins can finish half of your daily data
3rd reason : unavailability of many Hindi tv shows
gaatutube (2 months ago)
I don't know about Netflix, but I tried amazon prime free trial ... they literally have no interesting content (or very old content). Useless.
ExileRN (2 months ago)
Well in the philippines, theres only 15 movies each genre, I HATE IT
Jaydeep Kholvadiya (2 months ago)
No.1 is torrent
Abhishek Mishra (2 months ago)
Steven Louis Paul Goss (2 months ago)
It's because of T series
Ravi Kiran (2 months ago)
I will pay 800 rs if u make the office, parks and rec, 30 rock available
Mandy's TOP 10 (2 months ago)
Only one reason
Brajesh Singh (2 months ago)
Netflix needs a few blockbuster/popular content to capture the interest of the audience...you have to make audience want to pay for the content ...then the next stage comes
wowowee69 (2 months ago)
Easy, not enough bobs and vegana
ArmoreclawDonut (2 months ago)
T series is ruining everything. Sub 2 pewds
Zuhair Ahmed Syed (2 months ago)
Basically its too expensive for very little indian content it doesn't even have game of thrones like DUH?! 😑
underestimated kid (2 months ago)
I watch a lot of Netflix without actually using Netflix cost me $0 dollars