Lower subscription rates, more local content and easier payment options are some of the core issues that Netflix will have to fix before it can make a dent in the Indian digital entertainment business.

Existing players, say that at ₹500 a month for its services, Netflix may not make much of an impact in the highly price sensitive market. Jehil Thakkar, Partner and Head of Media and Entertainment practice at KPMG India, says, “Only about 5-7 per cent of Indian consumers consume English language entertainment currently… Given the challenges of the broadband infrastructure, Netflix is expected to gain traction among urban subscribers and will complement the DTH and cable TV services.”

Industry watchers say Netflix will have to look at other payment gateways like mobile wallets or mobile operator tie-ups for billings. Uday Sodhi, Executive Vice-President and Head-Digital Business, Multi Screen Media, says the differentiator will be both pricing and a slew of original content in the near term. For the company’s Sony Liv, subscription is priced at ₹149 a month.

Companies in the digital entertainment space point out that Netflix’s payment option is restricted to credit card and that may be an entry barrier as many Indians are still reluctant to part with credit card or debit details.

Subin Subaiah, CEO, Singapore-based Spuul Global, says, “India, unlike more developed markets comes with its own set of challenges — price sensitivity, multitude of languages and poor data connectivity which all providers, Netflix included, have to contend with. That said, the market and the opportunity are massive and growing.”

Most players in the digital entertainment business operate in the ₹99-₹300 band. Singapore-based Hooq offers its services for ₹99 a month. Others like Hungama charge ₹249.

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