A Case Study

Presentation for KORE.ai

By: Hardik Bansal
History

1997 2007 2013

Bringing New Content

Starting of Netflix
to Market Production
Expanding Video on demand Expansion
Initial business Introduction of Netflix entered Expanded to an
Focus on the streaming media Expanded the content- additional 220M
model
initial DVD while retaining the internationally in production subscribers and
included DVD sales
rental business DVD and Blu-ray 2010 with video industry operates in more
and rental by mail
rental business on demand than 190
countries
1998 2010 2016

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 What is
Netflix?
NETFLIX in INDIA

Netflix, Inc. is an American over-the-top content platform and

production company headquartered in Los Gatos, California. Revenue in Expense in Profit in Year
Netflix was founded in 1997 by Reed Hastings and Marc Randolph Year 2020: Year 2020: 2020:
in Scotts Valley, California. The company's primary business is a
subscription-based streaming service offering online streaming
923 CR 909 CR 14 CR
.
from a library of films and television series, including those
produced in house.

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 Netflix entered India in January 2016. In April
2017, it was registered as a limited liability
partnership (LLP) and started commissioning
content. It earned a net profit of ₹2.02 million for
the fiscal year 2017. In the fiscal year 2018,
Netflix's net profit shot up by 25 times to more
than ₹50 million. But the growth got stagnated
net year and Netflix couldn't even double its
profit in 2019. It’s profit has been constantly

NETFLIX
dipping as seen previously. I would say Netflix is
still under the scaling phase in India and it needs
to find ways to move upwards on the growth
IN INDIA: trajectory.

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Problem Statement
To Overcome the competition and ensure a steady user growth resulting in higher
profits for Netflix India.

Our Goals:
  
1. Come up with three Product solutions to drive user growth
2. Provide wireframes and explain the solutions in detail
3. Align metrics for the above solutions
 modification in the subscription rates.

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Approaches to ADDRESS the PROBLEM:
1. Know your customer (personas) & competitors
2. Primary Market Research
3. Market Opportunity
4. Value Proposition Design (how the solutions will address the problem at hand)
5. Business Model Canvas (how the proposed solutions will affect the existing
business model)
6. Proposed
   Solutions
7. Metrics to be captured

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 User Persona
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 or are currently using
Netflix.

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Primary Research
 50% of the Netflix users were subscribed.
 Most of the users would like to have new
content on Netflix 
 There were few users who wanted a
change or modification in the subscription
rates.

From   the primary research we can conclude that:

 1. Changes in subscription can lead to increase in the  customer

base for the OTT platform Netflix

 2. Introducing more and more new content will lead to even

stronger customer base in the existing market.

  
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 Competitors
Netflix is facing a tough competitions from various other OTT platforms that are using loss leader
principle to penetrate the ever growing Indian market and thus not allowing Netflix to get a firm
base on the ground. 

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Market Opportunity:

 The population of India: is 1.40 billion

 If an average family size is 3 then total households: 0.46 billion
 Only 50% of the families live in T1/2/3 cites: 0.23 billion families
 Current subscriptions: 5.5 million
 Current Competition (market captured by the competition): 120 million
  
 Market opportunity: ~ 120 million

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 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.

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Updated Business Canvas

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 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

What the
are less likely to leave the platform in the
middle of the subscription period.
 Introduction of AI based Advertisements for
future holds customers that keeps them engaging, glued to
the application.

for Netflix?

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 Solution 2:
 Introduce/invest in more original shows, and web
series, especially from the Hindi heartland. At present
middle and lower-middle classes are not able to
connect with the western or upper-class shows. There
is an opportunity as big production houses and
corporates are venturing into non-theatrical platforms
and they are considering app-based OTT platforms as

What the
an ideal medium for content creation. Besides, focus on
the regional content. As India is a diverse country, we
cannot have a single language program catalogue for
future holds the whole country. Having a regional flavor will surely
help in reaching out to subscribers in remote places.

for Netflix? Finally, focus more on quality than quantity, as without

quality content, even lower subscription rates won’t
help.

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 Solution 3:
In India, the majority of the population belongs to the middle & lower middle class and
they 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 group users like Kirana shopkeepers, teachers, and clerks. In the
majority of the cases, they prefer using cheap mobile phones having bad
configurations which are often not very conducive to online streaming. This particular
challenge is with other key streaming players like Disney Hotstar, Zee5, SONAYLIV and
Prime video as well. If Netflix addresses the problem (render high-quality video

What the
streaming in low bandwidth hand-held devices) then it could potentially disrupt the
market and can even attract users from other streaming platforms.
Netflix has already done something similar in past using big data for deep analysis and

future holds
predictive algorithms to help provide the best experience for our members. A well-
known example of this is the personalized movie which shows a recommendation
system that is tailored to each member’s tastes. 

for Netflix?
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.

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METRICS
Solutions 1 and 2 are relatively easy to implement. Once Another way to look at metrics is the Cohort Analysis
done we can track Netflix adoption with the help of the which compares similar user groups over the period. This
gives us a better picture in case the product is changing.
Pirate metrics (AA-RRR) i.e., over time how many users The users who experience the trial in one month will have
downloaded the app, opted for the yearly subscription a different experience from those who experienced it in
and later referred it to their friends. These metrics help month three. Referring to the picture below, we can see
us to adapt and make necessary changes to the product through the revenue per customer is not changing much
over months once we perform cohort analysis, we can see
strategy. the subtle difference across various cohorts over time.

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Thank
You