Netflix Inc's global expansion is set to reach movie-mad India, industry executives said, where high-speed Internet connectivity is rapidly spreading among a vast population used to paying pennies for their latest Bollywood fix.
Slowing growth at home in the United States has put pressure on video-streaming service Netflix to grow internationally and India, where a fifth of the country's 1.3 billion people are online, is widely seen as a likely next step in Asia.
Netflix declined to comment on its plans but industry executives told Reuters they expect an India announcement as early as this week at the Consumer Electronics Show in Las Vegas, where co-founder and Chief Executive Reed Hastings is scheduled to talk about the company's international expansion.
"Netflix is entering India at the right time," said analyst Tarun Pathak at Counterpoint Technology Research.
Most Indian Internet users go online via smartphones, which are increasingly capable of connecting to the latest, fourth-generation network (4G) which cuts streaming times considerably.
"We expect at least one in two mobile devices sold this year to be 4G equipped," Pathak said.
The challenge is convincing Indians to spend, analysts said. Netflix's average revenue per user (ARPU) in the third quarter was $25.29 in the United States and $21.59 abroad.
In India, where a movie can cost 29 rupees (44 cents) and monthly subscriptions are as little as 200 rupees, analysts expect ARPUs to be a fraction of that.
MOBILE PARTNER
With most Indians getting online with smartphones, a telecom partner could speed Netflix's market entry a year after Hotstar - from Twenty-First Century Fox Inc controlled Star Network - and three years after Singapore-based Spuul.
Netflix paired with SoftBank Group Corp for its Japan launch, piggybacking on the one of the country's mobile network providers for its first foray in Asia in September.
Netflix's U.S.-listed Indian rival Eros International PLC announced a partnership on Monday with Idea Cellular Ltd, the country's third-biggest mobile carrier with 167 million subscribers.
For telecoms companies, streaming services increase data consumption which is more lucrative than telephone calls. Moreover, movie subscriber numbers are widely expected to jump with the large scale introduction of 4G services, led by the Jio network of Reliance Industries Ltd.
But in price-sensitive India, reaching new customers with big-budget content is likely to prove far easier than fending off the appeal of cheap, easily available pirated copies.
"In India our biggest worry is not Netflix," said Michael Smith, chief technology officer at startup Hooq, backed by Singapore Telecommunications Ltd, Time Warner Inc and Sony Corp.
"It's the 20 cent copy of a movie that has just been released."
Reuters
Wed Jan 06 2016
The Netflix logo is shown in this illustration photograph in Encinitas, California October 14, 2014. REUTERS/Mike Blake/Files
Kampung Tanjung Kala residents affected by flooded bridge every time it rains heavily
Almost 200 residents from 60 homes in Kampung Tanjung Kala have ended up stuck when their 200-metre (m) long concrete bridge flooded.
COP29 climate summit draft proposes rich countries pay $250 billion per year
The draft finance deal criticised by both developed and developing nations.
Bomb squad sent to London's Gatwick Airport after terminal evacuation
This was following the discovery of a suspected prohibited item in luggage.
Kelantan urges caution amidst northeast monsoon rains
Kelantan has reminded the public in the state to refrain from outdoor activities with the arrival of the Northeast Monsoon season.
Former New Zealand PM Jacinda Ardern receives UN leadership award
Former New Zealand prime minister Jacinda Ardern was given a global leadership award by the United Nations Foundation.
ICC'S arrest warrants for Netanyahu, Gallant an apt decision - PM
The decision of the ICC to issue arrest warrants against Benjamin Netanyahu and Yoav Gallant is apt, said Datuk Seri Anwar Ibrahim.
KTMB provides two additional ETS trains for Christmas, school holidays
KTMB will provide two additional ETS trains for the KL Sentral-Padang Besar route and return trips in conjunction with the holidays.
BNM'S international reserves rise to USD118 bil as at Nov 15, 2024
Malaysia's international reserves rose to US$118.0 billion as at Nov 15, 2024, up from US$117.6 billion on Oct 30, 2024.
Findings by dark energy researchers back Einstein's conception of gravity
The findings announced are part of a years-long study of the history of the cosmos focusing upon dark energy.
NRES responds to Rimbawatch press release on COP29
The Ministry of Natural Resources and Environmental Sustainability (NRES) wishes to offer the following clarifications to the issues raised.
Online Safety Bill and Anti-Cyberbullying Laws must carefully balance rights and protections
The Online Safety Advocacy Group (OSAG) stands united with people in Malaysia in the fight against serious online harms.
Malaysia's inflation at 1.9 pct in Oct 2024 - DOSM
Malaysia's inflation rate for October 2024 has increased to 1.9 per cent, up from 1.8 per cent in September this year.
Saudi Arabia showcases Vision 2030 goals at Airshow China 2024
For the first time, Saudi Arabia is participating in the China International Aviation & Aerospace Exhibition held recently in Zhuhai.
King Charles' coronation cost GBP 71mil, govt accounts show
The coronation of Britain's King Charles cost taxpayers GBP72 million (US$90 million), official accounts have revealed.
Couple and associate charged with trafficking 51.9 kg of meth
A married couple and a man were charged in the Magistrate's Court here today with trafficking 51.974 kilogrammes of Methamphetamine.
PDRM to consult AGC in completing Teoh Beng Hock investigation
The police may seek new testimony from existing witnesses for additional insights into the investigation of Teoh Beng Hock's death.
Thai court rejects petition over ex-PM Thaksin's political influence
Thailand's Constitutional Court rejects a petition seeking to stop Thaksin Shinawatra from interfering in the running the Pheu Thai party.
Abidin takes oath of office as Sungai Bakap assemblyman
The State Assemblyman for Sungai Bakap, Abidin Ismail, was sworn in today at the State Assembly building, Lebuh Light.
UPNM cadet officer charged with injuring junior, stomping on him with spike boots
A cadet officer at UPNM pleaded not guilty to a charge of injuring his junior by stomping on the victim's stomach with spike boots.
How Indian billionaire Gautam Adani's alleged bribery scheme took off and unraveled
The indictment was unsealed on Nov. 20, prompting a $27 billion plunge in Adani Group companies' market value.