Heavyweights like Netflix and Disney Battle for Indian Market

–News Direct–

ValueTheMarkets News Commentary – The Indian entertainment market is growing at a rapid rate that far outstrips contemporaries in the West. The huge nation of more than 1 billion people is expected to see a compound annual growth rate of nearly 15% over the next five years according to Statista. This article discusses the issue with reference to Netflix (NASDAQ: NFLX), Walt Disney Co (NYSE: DIS), Paramount Global (NASDAQ: PARA) and QYOU Media (TSXV: QYOU) (OTCQB: QYOUF).

With a huge population dominated by young people, an emerging middle class and rapid adoption of technology, India represents a compelling opportunity for entertainment companies. We'll explore here how some, like Netflix, appear to be underperforming and facing criticism for their efforts. Meanwhile, Disney has seen some success but might be bailing out of the country as it faces increasing competition from the unlikely form of Paramount's JioCinema. Harnessing the power of cricket has yielded explosive viewing figures, but producing local content seems to be the key to growth in this market.

QYOU Media (TSXV: QYOU) (OTCQB: QYOUF) produces, distributes and monetizes content created by social media influencers and digital content stars.

The company has recently announced the launch of a new smart TV channel dedicated to Bollywood and Indian entertainment industry news.

The channel continues the company's tried and tested method of using creator-led content. That's because this new venture is a collaboration with Bollywood Hungama, a leading social media destination for Bollywood gossip.

With the Indian smart TV market having tripled in the last 18 months and making up more than 90% of TVs sold in the country over the last year, focusing on the space could be a smart strategy.

However, with its wide variety of content being distributed across app-based platforms, video-on-demand services, traditional networks and even gaming platforms, the company is reaching over 125 million Indian households weekly as it strives to build an entertainment empire.

Netflix (NASDAQ: NFLX) is another company seeking to capitalize on the huge Indian entertainment market. According to the Economic Times, the streaming service's subscriber base in the country floats around between the 8 million and 10 million mark.

There is a huge amount of content created specifically for the market on the platform. These Indian Netflix originals include 59 original movies and even more television shows, as well as several stand-up comedies and documentary features.

While this sounds like a significant amount of both subscribers and local content, it might not be enough.

Analysts at AllianceBernstein have noted that the streaming giant lags behind several big-name competitors in the country in terms of subscriber numbers, despite attempts to entice people on board with price cuts.

The key problem with Netflix's offering in India? Alliance Bernstein analysts point to a lack of locally produced content, which makes up just 12% of its offering for Indian users.

Walt Disney Co (NYSE: DIS) is at the other end of the streaming spectrum. This entertainment giant has performed strongly in India, obtaining approximately 40 million subscribers through its Disney+ Hotstar offering, which is the largest streaming platform in the country.

The platform has an emphasis on local networks, carrying content such as films, television series, live sports and original programming. This content is combined with established Disney brands and franchises like Walt Disney Studios, Pixar and Lucasfilm, creating an entertainment offering with big-brand and local crossover.

However, Disney has faced major competition in the region too. Recent reports suggest the entertainment powerhouse could even opt to sell Hotstar off to Indian billionaire Gautam Adani. There is some suggestion that this is due to pressure from emerging competitor JioCinema.

This growing streaming giant even has a major Western entertainment company behind it

Paramount Global (NASDAQ: PARA), with their Paramount+ streaming app, have had fair success too, with second-quarter earnings showing a 47% increase in revenue from the platform, while viewing hours rose too.

However, it's the company's activities in India that we're interested in.

That's because it owns a 13% minority stake in JioCinema owner Viacom18, offering significant exposure to the rapidly growing Indian streaming outfit. Its growth has been aided by the decision to show Indian Premier League (IPL) cricket matches for free.

Indeed, the 2023 IPL final set a record for concurrent viewership of a streaming broadcast, attracting over 120 million unique viewers.

The success of this platform led Paramount to recently shelve plans to launch its own app in India, instead opting to release content as part of JioCinema's premium package. This could potentially supercharge an already wildly successful product.

Several strategies have been employed as companies compete to dominate the Indian entertainment market. Netflix appears to have failed to lean heavily enough into locally produced content in its efforts, with Disney, QYOU and Paramount all using local studios and creators to steer the success of their content. Aside from this, exploiting India's fascination with cricket and growing interest in tech and gaming appears to be key to ensuring continued success.

IMPORTANT NOTICE AND DISCLAIMER

PAID ADVERTISEMENT

This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the "Publisher") is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by QYOU Media Inc. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and twenty five thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher's ability to provide unbiased information or opinion.

CHANGES IN SHARE TRADING AND PRICE

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.

NO OFFER TO SELL OR BUY SECURITIES

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.

INFORMATION

Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. This communication is based on information generally available to the public and on an interview conducted with the company's CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.

NO FINANCIAL ADVICE

The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual's financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company's SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.

FORWARD LOOKING STATEMENTS

This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company's actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company's operations; the size and growth of the market for the company's products and services; the company's ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company's business.

INDEMNIFICATION/RELEASE OF LIABILITY

By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.

TERMS OF USE AND DISCLAIMER

By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY

All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.

AUTHORS: VALUETHEMARKETS

valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.

Contact Details

ValueTheMarkets

+44 141 530 4080

editor@valuethemarkets.com

Company Website

https://www.valuethemarkets.com

View source version on newsdirect.com: https://newsdirect.com/news/heavyweights-like-netflix-and-disney-battle-for-indian-market-427583356

QYOU Media Inc

comtex tracking

COMTEX_441792486/2655/2023-10-12T10:00:27

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Boston New Times  journalist was involved in the writing and production of this article.

Written by