Netflix's International Business: India, Russia, and COVID-19 Impact

This report analyzes Netflix's international business performance, focusing on its challenges and failures in the Indian and Russian markets. It explores the reasons behind Netflix's struggles, including competition from local OTT platforms, pricing strategies, and content preferences. The report examines the lessons Netflix has learned, such as the importance of market research, content customization, and understanding local cultures. It also discusses the internationalization strategy of Netflix, its use of social media, and the impact of COVID-19 on its sales and content releases. The report concludes with suggestions for Netflix to improve its market presence in these regions, including partnerships, content diversification, and pricing adjustments. The analysis is supported by relevant sources, including journal articles, news reports, and online resources, providing a comprehensive overview of Netflix's international business landscape.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
What happened to Netflix in Russia and India............................................................................3
lessons for Netflix........................................................................................................................4
My views......................................................................................................................................4
Internationalization of Netflix......................................................................................................5
Impact of covid 19.......................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
International business are increasing sales of companies. International business means
when company do business in foreign company. There company is recognized internationally
which helps in increasing brand recognition. Netflix is the multinational company. Company has
started form USA and now doing business in many countries. It is the OTT platform and launch
movies and series. It is successful in some countries but not in other. The major failure of
company in some countries are the local OTT platforms. Company got success in the home
country which is US. The reason for success is company is aware about preference of people
regarding what they want to see. Covid 19 has impacted the company positively because sales of
company increased after pandemic hit. This study will discuss Netflix and why it has
experienced hardships in India and Russia. Further it will explain that what lessons Netflix get.
This report will also discuss Internationalization of Netflix and what impact corona virus has on
Netflix.
MAIN BODY
What happened to Netflix in Russia and India
India:
Netflix has received growth in India from last five years. But its users are dropping after
January because hot star is taken by Walt Disney company (lidhoo, 2021). From sunnxt platform
Netflix is ahead and sunnxt is the OTT platform which shows regional content. It cannot be said
that company is not working hard because company is giving their best to increase users. As the
company is planning to invest more so that original shows can be produced. Some of their series
are hit even on international platforms but still it is behind jio TV and airtel TV. Indian platforms
does not match algorithm of Netflix, as it is not able to suggest the right content. Because Indian
platforms are very complex to navigate.
Hot star is streaming all TV serials which is not possible to be viewed on television every time.
Hence hot star has attracted all TV customers. It can also said that TV channels are shifted to
digital at the lower costs. And this cost benefit is enjoying by customers. Although Netflix is the
legacy player instead of that is lagging behind zee5, amazon prime and sunnxt. The content
which other OTT platform is having is not present in Netflix. Other OTT platforms are also
cheap as compare to Netflix. Now competitors do not consider Netflix as threat.
Russia

Prime minister of Russia has stopped streaming services in the country. A bill is passed
which is restricting foreign streaming services. It has done so that domestic OTT platforms can
be promoted. Netflix are pressured by higher authorities because American companies are
decreasing the market share of domestic streaming business (Buckley, Enderwick and Cross,
2018). New law has framed by Russian government which says that company have to stream
majority of their content into Russian language and content should also produce on Russian land.
Netflix are also targeted by the legislation of the country.
lessons for Netflix
Netflix has understood that if the company want to become successful in Indian market
then they have to increase TV series because audience or India like to watch TV series more over
movies. Netflix can also approach TV channels and can stream their TV serials so that can attract
TV audience. Netflix got the biggest lesson that every country is different and so as their
audience. It is not possible that audience of one country will like same content as audience from
other countries like. Market research is very much important before launching in any new
country. In India Netflix plan is starting from 500 rs which is more as compared to rival
companies. After failure Netflix got lesson that the company have to work on their pricing
policy. If the price of Netflix is converted into dollars then it can be easily afforded by UK
people but Indian middle class people do not afford such price every month (Sharma and et.al.,
2020). Content is king for entertainment industry.
Rival companies of Netflix like hot star, voot etc are getting advantage from local content. So
Netflix should also approach local production. To serve the target audience Netflix should make
Indian specific content. Customization of content is necessary if company want to increase their
target audience. Other international companies are also customizing their products and services if
want to survive in India for long term. Netflix understood that studying culture of the country in
which company is operating is compulsory. Company should ignore in entering such countries
which have strict policies for foreign company because if company enter such countries then will
definitely face loss.
My views
It is suggested that Netflix should do proper market research before entering any new
market or carrying expansion. In India Netflix is getting tough competition so company can

takeover regional OTT platform so that can get their audience which is helpful for company for
increasing the sales. Related to content acquisitions company should come up with aggressive
strategies so that can get competitive advantage. When creating original content Netflix should
be more careful so that there audience does not shift to rival companies. Company should bring
creativity in content which will help them in increasing profits.
Company can also do partnerships with local so that can bring fresh and new shows for their
viewers. In Russia company should focus on streaming Russian shows so that can increase
profits and also target audience. In the countries in which company is not doing reasonable
amount of business (Buckley and Casson, 2019). So in those countries Netflix should do
promotion by giving advertisement, resulting more people will know about company. In India
where people are not able to afford subscription price of Netflix. Company should come up with
offers and discounts so that consumers does not shift to rival firms.
Internationalization of Netflix
Netflix is the US based company and is expanded in many countries including Russia and
India. Company used social media platform for carrying promotional activities worldwide
(Lobato, 2019). As company know the power of social media and can easily attract large
audience through this. In the international strategy of Netflix global content is the important part.
Impact of covid 19
Company gets impacted from covid 19 but in positive way. After covid hit the world
theaters got closed so for fulfilling entertainment people have shifted to OTT platforms. Netflix
is also an OTT platform which received high sales during lockdown. As during lockdown people
are not allowed to mover out from their house. So people are passing their time by watching
series on Netflix and chilling. Due to corona virus company witnessed growth in sales in
worldwide. Covid also gives chance to the company to think that what else they can launch to
give good experience to their customers. Covid 19 has decreased sales and profits of every
industry but has increased sales of OTT platforms (Burroughs, 2019).
CONCLUSION
Through this report it can be concluded that Netflix is the famous OTT platform and
doing business in multiple countries. Company has witnessed failure in some countries because

extrinsic research is not done by them. Local OTT platforms has also become the biggest rivals
for company. Company should work on improvising their content so that can get competitive
advantage and also can do partnership with local firms so that can take benefit of their audience.
Covid 19 has given kick to Netflix business by increasing their sales.

REFERENCES
Books and journals
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies. 50(8). pp.1424-1439.
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford
University Press.
Burroughs, B., 2019. House of Netflix: Streaming media and digital lore. Popular
Communication. 17(1). pp.1-17.
Lobato, R., 2019. Netflix nations: The geography of digital distribution. NYU Press.
Sharma, P. and et.al., 2020. Managing uncertainty during a global pandemic: An international
business perspective. Journal of business research. 116. pp.188-192.
Online
lidhoo, P., 2021, Netflix and its battle for India. [Online]. Available through:
<https://www.fortuneindia.com/enterprise/netflix-and-its-battle-for-india/105217>
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