Binge-Watching

2017 will mark two decades of Netflix’s remarkable journey from a DVD-by-mail subscription service in the US to a streaming video giant which has covered almost the entire globe. Valued at over $57 billion, Netflix is a phenomenal entrepreneurial success founded by Reed Hastings. Even though Hastings had started out by renting DVDs in 1997, he chose the name Netflix because he foresaw a future where movies would be streamed on the internet. He did manage to make that transition in 2007, which also happened to be the year when Netflix delivered its billionth DVD!
Since then Netflix’s DVD business became secondary as the streaming on-demand business grew exponentially in the ensuing decade. But from being a mere on-demand movie distribution platform, Hastings took the big gamble of producing original TV shows as movie and TV production houses started viewing Netflix as less of an enabler and more of a competitor. The gamble has paid off brilliantly with viewers around the world lapping up its content, be it House of Cards, Narcos or the just-released The Crown.
Even as Netflix is investing over $6 billion this year to produce more originals to hit the 100 million subscriber mark, it increasingly needs to foray into international markets to get to that magic number and beyond. One such market that Netflix chose to enter last year was India. But India presents a unique challenge to Netflix as its pricing of nearly $8 is expensive given that most other video-on-demand (VOD) players are either offering their content free or charging a price which is significantly lower than that of Netflix.
While most VOD players are focused on mobile internet subscribers as they believe that is where the market lies, Netflix is a service that is streamed largely via broadband. How Netflix and other players are approaching the VOD game is the subject of this issue’s cover story that starts on page 46. Among other stories, we take a look at how Himalaya wants to grow even bigger in the personal care space (page 40) and why Cummins
India could be a good bet (page 64).





N Mahalakshmi