Netflix may announce the launch of its services in India at the CES which will be held on Jan. 6 to Jan. 9, 2016 in Las Vegas.
Netflix, an on-demand Internet media streaming service, is very popular in the United States and it is also available in more than 50 countries across the globe, including Switzerland, Austria, France, Germany and more. In October 2015, the company also expanded its services to Japan, Spain, Portugal and Italy as part of its global expansion strategy.
The media streaming service is expecting to offer its services in about 200 countries in the next two years. India may be the next big market that Netflix is targeting in the near term.
"It's similar to Starbucks entering India. Everybody knew about it but cafe brands were late to react and Starbucks came and stole the show. We don't want to be caught on the wrong foot," a spokesperson from Tata Sky (a direct broadcast satellite television provider in India), told the Times of India.
Netflix has not yet confirmed its plans to launch its services in India. However, The Hindu Business Line cites unnamed industry sources who suggest that the American Internet media service will announce the launch of its services in India during the 2016 CES.
"Netflix could enter India through a partnership with a local telecom firm to take advantage of the 4G networks that make watching high quality video streaming possible on a mobile anywhere," reports The Hindu Business Line.
Internet media streaming is gaining popularity in India and it may be a good time for Netflix to enter the Indian market and grab a major chunk of the market share. According to The Hindu Business Line, in 2014, online video traffic in India was 46 percent of all the consumer Internet traffic in the country, an increase from 38 percent in 2013. Internet video traffic is also expected to increase to 74 percent by 2019.
If launched, Netflix will not be the sole Internet media streaming provider in India. Similar services from Google Play, Reliance Communications and more are also available in India.
Hooq, a Singapore-based on-demand video provider, launched its services in India in July 2015. The service is available in India for INR 199, or about $2.99, and allows users to download and stream TV shows and movies via the Internet.
In the United States, Netflix charges $8.99, or about INR 600, per month. The service allows subscribers to watch HD-quality TV shows and movies on two devices at once. However, the monthly subscription plans for the Indian market is expected to be cheaper than that in the United States.
Netflix is also borrowing about $1 billion as part of its expansion to Asian countries such as Taiwan, South Korea, Hong Kong and Singapore. Netflix is estimating to start the services in these countries sometime in 2016.
Netflix has a vast library of content and in some regions the services are fully localized. Netflix also offers dubbing and subtitles to viewers in many regions. Indian customers will have to wait until Netflix officially confirms its plan to enter the Indian market in 2016.
Photo: Marit & Toomas Hinnosaar | Flickr
