Netflix and Amazon Prime adding more viewers; Why are Indian companies not catering as expected?

After the frenetic pace of mergers and acquisitions of media platforms in India, the Over-the-top (OTT) platforms are reportedly likely to ease spending on entertainment content, which may impact the commissioning of fresh content. According to one of the recent reports, the shift is a response to the stagnation in subscriber numbers and a strategic pivot towards profitability after a period of aggressive spending.

Industry experts forecast that Netflix and Amazon Prime Video will spearhead OTT content expenditure, while Indian companies delay approving new projects due to merger and acquisition activities. Currently, Netflix has 6.5 million of subscriber base in India, giving it a 4% share in market dominated by Disney Hotstar.

However, several reasons can add to this:

Content Variety

Experts claim that Netflix and Amazon Prime offer a wide range of content from around the world, including popular series from the US, UK, South Korea, and other countries. This variety caters to diverse tastes and preferences, attracting a larger audience.

High Production Value

International streaming platforms often have higher budgets for content production, resulting in higher production values, better visual effects, and more polished storytelling. This can make their series more appealing to viewers.

Global Reach

Netflix and Amazon Prime have a global audience, which incentivizes them to invest in high-quality content that can appeal to viewers beyond their home countries. Indian viewers benefit from this investment as they gain access to globally acclaimed series.

Subscription Models

Both Netflix and Amazon Prime operate on subscription-based models, which allow them to invest in original content without relying heavily on advertising revenue. This financial flexibility enables them to produce a greater volume of original series.

Marketing and Distribution

Netflix and Amazon Prime have robust marketing and distribution networks, allowing them to promote their content effectively and reach a wider audience across India. This visibility contributes to their dominance in the Indian streaming market.

However, it's worth noting that Desi companies like Hotstar (now Disney Hotstar), ZEE5, and SonyLIV are also investing in original content and gaining popularity among Indian viewers. As these platforms continue to grow and evolve, they may increasingly compete with international streaming giants for viewership in India.