India Journey so far:
Problem Statement:
Overcome the competition and ensure a steady user growth resulting in higher profits for Netflix India.
Our Goals:
- Come up with three Product solutions to drive user growth
- Provide wireframes and explain the solutions in detail
- Align metrics for the above solutions
- Publish a press release announcing the launch of the initiatives
Approach to address the problem:
- Know your customer (personas) & competitors
- Market Opportunity
- Value Proposition Design (how the solutions will address the problem at hand)
- Business Model Canvas (how the proposed solutions will affect the existing business model)
- Proposed Solutions
- Metrics to be captured
- Press Release
1. User Personas:
User personas are semi-fictitious representations of your target customers. In this case, I have chosen two of them who could well be the target customers of Netflix in future.
Competition:
2. Market Opportunity:
- The population of India: is 1.30 billion
- If an average family size is 3 then total households: 0.43 billion
- Only 50% of the families live in T1/2/3 cites: 0.22 billion families
- Current subscriptions: 20 million
- Current Competition (market captured by the competition): 100 million
- Market opportunity: ~ 100 million
Value Proposition Canvas:
With the help of the Value proposition canvas, I am trying to find a solution which could address the key pain points for the end-users and create gains for them.
3. Updated Business Model Canvas:
Based on the customer feedback and usage metrics, we need to keep refining our business model. In this case, Netflix has already reached a product-market fit stage hence its focus should be on product growth. Based on the new insights, the following is the updated business model for Netflix India.
4. Probable Solutions
Solution 1:
Review the existing subscription model and introduce an annual subscription model. Make it competitive with Hotstar and Amazon prime. This will not only help in attracting new customers but also retain the existing ones. Customers once subscribed to the annual plan are less likely to leave the platform in the middle of the subscription period.
Solution 2:
It is essential to introduce and invest in more original shows and web series, particularly from the Hindi heartland. Currently, middle and lower-middle-class audiences struggle to connect with western or upper-class shows. There is a significant opportunity here, as major production houses and corporations are increasingly venturing into non-theatrical platforms, viewing app-based OTT platforms as ideal for content creation.
Additionally, there should be a strong focus on regional content. India is a diverse country, and a one-size-fits-all approach to programming will not work. Incorporating regional flavors will help reach subscribers in remote areas. Finally, it is crucial to prioritize quality over quantity. Without quality content, even lower subscription rates will not be sustainable.
Solution 3:
In India, most of the population belongs to the middle & lower middle class and could prove to be a major customer base for Netflix. The third solution that I am going to propose here is connected to hand-held mobile devices. Our target users are low- to middle-income users like Kirana shopkeepers, teachers, and clerks.
In most cases, they prefer using cheap mobile phones with bad configurations, often unsuitable for online streaming. This particular challenge is faced by other key streaming players like Disney Hotstar, Zee5, SONAYLIV, and Prime Video. If Netflix addresses the problem (rendering high-quality video streaming in low bandwidth hand-held devices), it could potentially disrupt the market and attract users from other streaming platforms.
Netflix has already done something similar, using big data for deep analysis and predictive algorithms to provide the best experience for our members. A well-known example of this is personalized movies, which show a recommendation system tailored to each member’s tastes.
So, my third solution is to invest in adaptive streaming algorithms and network technologies such as Open Connect to optimize streaming quality. We can start small, run a small spike and learn from the experiment.
5. Metrics:
Solutions 1 and 2 are relatively easy to implement. Once done we can track Netflix adoption with the help of the Pirate metrics (AA-RRR) i.e., over time how many users downloaded the app, opted for the yearly subscription and later referred it to their friends. These metrics help us to adapt and make necessary changes to the product strategy.
Cohort analysis is another way to examine metrics by comparing similar groups of users over time. This approach provides a clearer understanding, especially when the product undergoes changes. For instance, the experience of users who participate in a trial during one month can differ significantly from that of users who join in the third month.
As shown in the accompanying image, while revenue per customer may appear stable across months, cohort analysis reveals subtle differences among various groups over time.
6. Press Release:
FOR IMMEDIATE RELEASE: 19/12/2020
Netflix INC
1800-201-2345
info@netflix.in
Netflix introduces new Subscription models
New Delhi, India:
Monika Shergill, head of Netflix India, announced that starting in 2021, Netflix will introduce new user subscription plans. These plans will give users the option to choose between monthly and yearly subscriptions. The new subscription plans will be reasonably priced, keeping the Indian middle class in mind.
Besides the subscription model change, Netflix has collaborated with prominent production houses like YRF and Dharma Productions for the rights to their past blockbuster movies and has bought digital rights to upcoming films for the next three years.
“Netflix is at the forefront of bringing great entertainment from anywhere in the world to everyone in the world. I look forward to working with the board and all stakeholders to continue its traditions of innovation and growth here in India,” said Monika Shergill.
For more information, please visit our website – https://about.netflix.com/en/new-releases
About Netflix:
Netflix is the world’s leading streaming entertainment service, with over 195 million paid memberships in over 190 countries enjoying TV series, documentaries, and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. They can play, pause, and resume watching, all without commercials or commitments.
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