In India, Netflix, Inc. (NASDAQ:NFLX) Has A Tormentor In Eros

Netflix, Inc. (NASDAQ:NFLX) is on a global expansion spree. If subscriber acquisition is the main measure of success for a streaming service, Netflix’s efforts are already paying off in the multiple international markets it has entered. However, when it comes to venturing into India, Netflix has a major obstacle to overcome – Eros. The Indian homegrown films powerhouse has already taken much of the domestic video entertainment market and it resembles the kind of a problem that Netflix would not love to encounter.

International expansion

It has been fairly easy for Netflix, Inc. (NASDAQ:NFLX) entering Australia, Japan and several European countries. Management remains focused on taking Netflix to more international markets with the target set on covering 200 countries by the end of next year.

Original programming

India is one of the international markets that Netflix is salivating for, but with Eros in the picture, it is likely to be a tough nut for Netflix to crack. The mention of Eros may not ring many bells on the international scene, but in India, it is a symbol of what Netflix would like to be, that is, when it grows up. In India, Eros already does much of what Netflix is relying on in other global markets to accelerate expansion – original programming.

Netflix, Inc. (NASDAQ:NFLX) has a budget of $6 billion to investment on content this year alone, including creating original and exclusive content for its platform. Original programming together with subscription-based payment have helped Netflix to pace past major rivals in the video streaming market, but Eros could alter its equation when it reaches India.

Eros already boasts a portfolio of 3,000 movie titles to its credit and releases more than 70 films each year. An output of 70 films a year is more than any U.S. studio has been able to do. Additionally, Eros enjoys something like a cult following for its movies in the Indian market, which also gives it a leg up against local and foreign competition in the domestic market.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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