In
January 2016 at the Consumer Electronic show in Las Vegas, Netflix announced
its expansion to 129 new markets including countries like India, Singapore,
Vietnam, Turkey, Nigeria, Saudi Arabia, South Korea, Poland, Russia, Azerbaijan
among others. In many of these countries including India , Vietnam and Nigeria,
providing access to HD enabled video streaming services has proved to be a
difficult task due to uneven access to technology. High speed internet access
is not a luxury most can enjoy, and data costs are extremely high. To watch an
hour of content in HD for instance, one might have to shell out 3GB of internet
data. In a market that is heavily dependent on domestic television programming,
the entry of foreign media in a new format marked both note of jubilation and
anxiety at the same time.
While
lack of infrastructure for smoothening internet access was one of the concerns
that prolonged the entry of streaming services in India, the timing of Netflix’s
entry in 2016 also marked a strange convergence of debates on technological
access, including a war of words over net neutrality between the Telecom
Regulatory Board of India (TRAI) and Facebook. Facebook proposed a differential
data pricing model that was tied to content services. Facebook’s Free Basics
proposal, that effectively suggested ending zero-rating platforms in India was
rejected after intense consultations. But the idea of digital equality through
affordable internet access was looming large when Netflix started its expansion
in India. After the initial success in mobilizing support over the need for
equal access to digital platforms, Facebook lost its public support and had to
end its negotiations midway. Coming straight after this, Netflix’s entry was
seen as creating a rift between the haves and have nots, i.e those who could
afford high speed internet and those who could not.
Interestingly,
the subscription-based model that allowed users to access content was modelled
by Nextflix in India based on a three-tier model. The Basic, Standard and
Premium packages allowed users to simultaneous access one, two and four screens
respectively. While the price ranged from $8 to $13, this was more at par with
the basic cable and DTH plans in India. It raises a crucial question. Who were
the prospective users that Netflix was targeting for its market? Were these
users who are already familiar with the shows and who would prefer subscribing
to Netflix than download content from torrent? Or was it a new constituency of
viewers who were unfamiliar with English language entertainment, but supported
blockbuster Hollywood films such as Iron
Man and Godzilla with the same
gusto as a regional language film.
So,
effectively while the discussions were geared towards the need to catch up with
the new multi-screen culture that allowed a smooth flow of viewing from tablet
to smart phone to television, the essential infrastructure that could allow
these to materialize was still seeped in the realm of the ideal-case scenario. In
his announcement for the expansion into new markets, the CEO of Netflix identified the urge for the
immediate and simultaneous consumption of media content as the drive that
allowed Nextflix to bridge the geographical distance and language barriers.
Another
crucial factor that contributed to the discussions on the viability of Netflix
as a probable alternative to the cable broadcast is the way it was seen as a
connector to the global media platforms. For instance, there were intense
speculations about the smart phone boom in India in the last five years and how
accessory products could be marketed around it. This not only brought back
debates on net neutrality, but also allowed Netflix to cater to an already
established mode of operation tested in the data usage package offered by
internet providers. While the use of separate packages was not tried by Netflix
elsewhere, the use of three-tier model was seen as forging an intrinsic
connection between the already tried out formulae used by the internet
providers in the Indian market, allowing a cross platform leverage that was
relatively new to Indian mediascape.
However,
the Indian media ecology was rife with informal and pirate modes of circulating
and consuming media content. Netflix’s entry into the Indian market was thus, imbued
with a strange sense of contradictions. For instance, the viewership share of
English general entertainment channels in India is less than 1% and there has
been a marginal decline from 1.1% in 2013 to 0.9 % in 2014, making the target
users for Netflix even less tangible in terms of numbers.
On the
one hand, the smart phone boom in India was perceived as a ripe time for
Netflix’s Indian entry, especially because Indian Broadcast television never
simulcast American shows and waited for several weeks after any series is telecast
to stack its episodes. This was seen as a practice that was conducive to the “strip”
format that was followed in India, a trend that acclimatized the viewers who
pattern their media consumption practices on specific timings on a daily basis.
The strip format has been integrated as a part of the television programming,
with the distinct markers of weekly and week end slots clearly laid out.
Considering
the emphasis on binge watching that Nextflix has relied on to galvanize its
viewership, the focus on strip format has proved to be a difficulty. Even
Indian broadcast channels are trying to reorganize their content after the
entry of Netflix. For instance, Colors Infinity, a newly launched English
entertainment channel is telecasting ten back-to-back episodes of American TV
series Mad Dogs, as it is premiered
in the US.
One of
the persistent problems many Netflix users in India faced is the small
catalogue and unavailability of content including the House of Cards, Netflix’s own production. This triggered off a
search with multiple lists being compiled by users speculating on what could be
stacked in unnoticed corners. For instance, finder.com.au,
Australia’s most visited comparison site came up with a list and a
clarification that the confusion regarding is content is more because of the
way the streaming organizes the genre list. Another list was provided by Ogres-crypt.com to assist the viewers to
navigate the terrain of the relatively new entrant to the mediascape. In fact,
there were user guides and tips for new users that proliferated in a short
time, especially on how use of chromecast could help those users without a smart
TV.
Netflix’s
troubles in India open up the question of the “globe” to acute scrutiny. With
systems such as geoblocking in place, how can one conceive of a “global
television?” Even in the era of the Internet, the idea of a truly global
television then, remains haunted by questions of restricted access and
East-West divide. What remains crucial to us as television scholars is to redefine the idea of the global by
giving it up to polysemy and allowing for the ways content is distributed and
consumed through informal systems. For instance, Indian viewers knew and
watched shows such as Breaking Bad and
Dexter way before Netflix ever hit
the Indian shores. India didn’t necessarily need Netflix; rather Netflix’s
corporate ambitions needed India.
This is a great blog post and I love the last sentence! When Netflix first announced its expansion to all the different countries and I saw Nigeria on the list I was excited but also curious as to how it would work. You point out the obstacle of being able to watch HD content when most of the people in countries like Nigeria, India, and Vietnam are paying for data as they go and aren't really on a data plan like those in the US and Europe. It seemed like Netflix wanted to make itself available in as many countries as possible but didn't keep the situation and structure of the countries in mind. The lack of content and access to watching the limited content in many of these countries makes it almost unnecessary for people there to subscribe to Netflix. Like you state at the end of your post, "India didn't necessarily need Netflix; rather Netflix's corporate ambitions needed India." That right there basically sums up the US desire to globalize in every aspect possible even when it's not necessary or needed.
ReplyDeleteGreat post Darshana! And I agree with Anna, I especially love your last sentence! Sure seems to me that Netflix needs India more than India needs Netflix.
ReplyDeleteAnyhoo, I've been hearing buzz about the fact that Netflix's global expansion is not going as well as they planned, which actually isn't particularly surprising. Incase you're interested, I came across this short article from 2014, when Netflix was expanding to Australia and New Zealand (http://qz.com/299091/the-problem-with-netflixs-overseas-expansion/). The article notes how Australians and New Zealanders already found ways to bypass geo-blockers in order to watch Netflix, and questions the cost of the service and missing content (such as House of Cards). On an economic/industrial note, the author concludes: "If nothing else, Netflix’s march into new territories may highlight just how weird, arbitrary and outdated the system for international licensing of content has become."
Amazing stuff Darshana. The "Global Television" model for some reason feels like it must be less translatable than the Hollywood Blockbuster model that has become the standard. Reading your post, I kept thinking about the development of Bollywood in the 1990s in relation to the NRI community, and bringing some sort of "legitimacy" to the market that re-energized a middle and upper class market that had largely abandoned domestic production for, well, satellite TV. I think as you note, a lot of these models are based around certain issues of access. To subscribe to "Global Television," you need a high-speed internet connection, likely in a major city, likely without any power issues, and then a subscription to Netflix beyond this. And even with something like "House of Cards," knowing how to "beat" the system is dependent on a certain knowledge base. All this leads me to simply think about "Global TV" as you have challenge as not just a horizontal spread across the globe, but how far it reaches up and down the class structure.
ReplyDeleteThanks for articulating this for us, Darshana! Many eyes have been on Netflix performance in India, which I agree is seen as the most prescient example of one of the more challenging countries that Netflix is trying to break into, given the dominance of "homegrown" material. Though China's situation is compounded by a government censorship and regulation system more restrictive than that of India's, many seem to want to predict Netflix's ability to succeed in China based on what happens in India. Audiences in both countries are also more used to sharing content for free (or cheap) compared to American consumers. Given such environments, it seems unlikely that Netflix has any hope of competing with native content. Perhaps its only chance is to export its original content and hope legal channels remain more attractive than pirated options. Given your argument about how socially and economically disruptive Netflix's entry into India may be, I see a great deal of potential trouble in the future.
ReplyDeleteI am glad you mentioned the Chinese Television Industry, Danielle!! And I agree with your point that the government regulation would prohibit the coming of Netflix for sure. I would also like to add that , even if Netflix could make into foreign industry, it would hardy survive due to the numerous competition of the the emerging local streaming. It will need to make changes that is designed for that specific market. A successful example in Chinese market is how Amazon made into the industry through cooperating with local companies. The opposite example id the total failure of BestBuy in China, when it sticked to the same marketing strategy.
DeleteDarshana, this is a great post, and I see a a future disertation on this topic!! Please do work on it because it will be an on-going project. It drives a question of how digitalization may not survive easily in the globalization. Though we a approaching to a globalized television viewing atmosphere, there are differences within the boarders of nations and audiences certainly do not experience the ubiquitous TV materials. The digitalization of television made a big step to distributing content in the the same platform, but regulations still prohibits the ubiquitousness. Hence, the shows travels, but the institution does not.Same as India industry, Chinese television industry is also very complex for Netflix to get in or make a profit. It is a totally different situation for online streaming companies such as Netflix to master another country's existing system. And though the program "House of Cards" could be a global phenomenon, the company that made the show could not travel as freely as the show.
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