Netflix Vs Other OTT platforms

OTT platforms are going to saturate soon. As a PM at Netflix, how do you react?

Netflix is the leading OTT platform in the world. From rented CDs to personalized movie suggestions Netflix came a long way in entertainment.

Understanding Netflix revenue model

  1. One major revenue source for Netflix is the subscription fee. In India, they have four plans. The price varies from INR 149 to 649 per month. Netflix earns millions from its subscribers.
  2. In addition, Netflix is now collaborating with Jio, Tataplay, and Airtel to include Netflix in their plans. 

From the expenditure side, 

  1. Netflix spends most on licensing, acquiring, and broadcasting rights. It ties up with major production houses to get the first broadcasting rights. 
  2. In Addition, Netflix has started their production for exclusive content called Netflix Originals. The production of a movie is very costly.
  3. Netflix is not the only OTT platform available today. To stand out from the rest, it has to spend a hefty amount on marketing and advertisements.
  4. Netflix has developed an impressive algorithm to capture relative content to the audience. It is one of the reasons for its popularity. Developing and maintaining that platform is costly.

Competition Analysis (Features)

Amazon PrimeDisney + HotstarSony LivNetflixApple TV+
Premium Plan1500/- per year1500/- per year999/- per year7800/- per year4476/- per year
Features1. 2 devices can log in
2. Ultra HD
3. Access to all content, 1-2 day delivery, Unlimited songs from Amazon Music
4. Ads-free
1. 4 devices can log in
2. Ultra HD
3. Access to all Content
4. Ads-free
1. Access to all Sony TV channels, shows, and sports channels
2. Ulta HD
3. Download and watch later
4. Ads only on sports
1. 4 devices can log in
2. Ultra HD
3. Access to all content
4. Ads-free
1. Access to the high quality Apple original content
2. 6 family members can use the same account
3. If you have an apple product, first 3 months are free
Mid-tier Plan459/- per 3 months899/- per year699/- per 6 months499/- per monthdo
FeaturesSame features, just a little costlier1. Only 2 devices can connect.
2. HD quality
Same features, costlier than the yearly plan1. Only 2 devices can connect
2. HD Quality
Low-tier plan179/- per month399/- per year299/- per month149/- per monthdo
Features1. Same features
2. Access to all content
3. Costlier
1. Majority of sports content and live games
2. Domestic content
3. Selective International content in local language
1. Low-quality Videos
2. Only accessible from mobile and tabs
3. Access to all content
4. One device can log in
5. Costlier
FreeNA1. Sports highlights with Ads
2. Selective movies with Ads
1. Selective movies with adsNANA

Highlights of this comparison

  1. Netflix is the most expensive platform
  2. Netflix and Apple have one revenue stream. Hotstar and SonyLiv shows Ads, Prime Video is part of Amazon’s loyality program.
  3. Netflix and Prime does not filter their content according to the plan. Apple has only one plan.

Diving deeper into the problem

  1. During the pandemic, Netflix has witnessed a spike in subscriptions and total consumption. But Netflix is not the only OTT platform available today. Amazon Prime, Disney + Hotstar, Hulu, Apple TV+, and many more have started giving the same service. Traditional entertainment producers like Sony, eros, HBO are also joining in. Most of them have been in this industry for generations or are backed by heavy investment. For a consumer, Netflix subscriptions are optional now.
  2. Iconic movies and series like Friends, The Office are available on 2-3 platforms now.
  3. Quality content is rare. No matter how much you spend on the production, artistic things like a well-written script, well-directed movies come once in a while. And with all the options in the world, the broadcasting license goes to the highest bidder.
  4. Most OTT platforms like Sony, Disney, HBO have massive and exclusive content of their own. Whereas, Netflix and Prime have recently started producing their shows.

Clarifying the problem statement

Netflix has the largest userbase and leading by a huge margin. So acquisition is not the problem. The problem is retention. Saturation means too many platforms are available today, where the consumer has to make a conscious decision between Netflix and its competitors. Because Netflix does not stand for good content anymore.

This graph shows how the Netflix market shares came down from 40% to 30% and Apple TV is the only one rising from zero to 5%


  1. My first plan is to focus on exclusive content ‘Netflix Originals’. Bring the best talents on the field to create highly engaging materials. Good content will automatically attract the audience. Money heist, Squid Game are some examples. Good content and a high engagement rate will also ensure control over subscription price. Exclusive content does not come cheap. Netflix subscription should be a status symbol, a symbol of exemplary content, and an audience with great taste.
  2. Filter the content as per plan. The ‘Netflix Original’ is to come in the premium segment.
  3. Exit from TV/ Broadband plans like Jio TV, Airtel, or Tata. Netflix is not any other channel.
  4. Spotify has tied up with car companies for pre-installed Spotify modules in the car audio systems. Netflix can do something like this. 
  5. Create personalized emails like a time travel about the TV shows or movies consumers watched to lure them to watch again.


  1. These are mostly marketing decisions. But I shall start with point 5, and monitor how customers react.
  2. Then I move to point 4 to try and talk to the car manufacturers and cab services like Uber.
  3. Creating ‘Netflix Original’ is a time-consuming and investment-heavy process. But the strategy should be to invest in engaging shows.

If you like my analysis, you are in for a treat. See my other case studies.