(TIỂU LUẬN) THE DIFFERENCE IN NETFLIX’S CULTURAL ENVIRONMENT BETWEEN THE US AND INDIA

FOREIGN TRADE UNIVERSITY FACULTY OF ECONOMICS & INTERNATIONAL BUSINESS THE DIFFERENCE IN NETFLIX’S CULTURAL ENVIRONMENT BETWEEN THE US AND INDIA Lecturer: Nguyen Hong Hanh Class: CTTTKT K56 - Group: Members: 1, Nguyen Vu Ngan Hanh – 1711140028 2, Hoang Linh Chi - 1711140013 3, Dao Thuy Duong - 1711140022 4, Ngo Phuong Anh – 1717140004 5, Nguyen Phuong Linh - 1711140052 6, Vu Thuy Van Trinh - 17111400 Hanoi, September 2020 TABLE OF CONTENTS I Overview of Netflix Brief history Vision and mission American market II Theoretical background Definition of culture Factors affecting culture (components of culture) III Impacts of cultural differences on Netflix’s business activities in India 10 Habit of using credit card in India 13 Variety of languages requires diversity 15 Indian opinion on price 18 IV Netflix’s adaptation strategy 19 Contents and subtitles adjustments 20 Price adjustments 21 V CURRENT PROBLEMS AND SUGGESTED SOLUTIONS 22 Results 22 Problems and suggestions 23 REFERENCES: 26 ABSTRACT Netflix is an American media online service provider, whose feature mostly films and television shows popular in America and worldwide Currently Netflix is considered a giant in the online media platform industry and has had footprints on over 190 countries and territories across the globe Understandably, Netflix has expanded its services to India, the country with the most mobile streaming viewers in the world Albeit being a potential and lucrative market, India proved to be a challenge to Netflix due to cultural barriers Like any other multinational corporations, Netflix needed to make due diligence research about Indians and their culture during their market infiltration From there, Netflix can come up with appropriate plans and decisions for a successful integration We will look most closely into the cultural difference between America and India and highlighting the importance of culture in international branching I Overview of Netflix Brief history Netflix is an American entertainment services company that provides online video streaming and videos on demand, founded in 1997 by Marc Randolph and Reed Hastings Its headquarter is in Los Gatos, California Initially, it was a DVD distribution company, had only 30 employees and 925 titles available At the time, it operated on a pay-per-rental basis The rate and maturity date are similar to that of its traditional rival, Blockbuster Their sales method is to send DVDs to customers via email (DVD emailing) On February 25, 2007, Netflix distributed the billionth DVD At the same time, in the same year, Netflix completely restructured its way of doing business Despite being very successful with the form of DVD distribution via email, they also found that it would be replaced by videos on the Internet (video streaming over the Internet), so they decided to make a change Vision and mission At the Consumer Electronics Show (Las Vegas), Reed Hastings, Netflix’s chief executive, said: “Right now, you are witnessing the birth of a global TV network.” According to the CEO of Netflix, his company has not only been successful in dominating the global market, but also fundamentally changing the way customers use television Hastings said he was aiming to invest in a core technology of online transmission "We hope to be able to show exactly what shows you need based on your mood", he said Netflix has also announced a mission that: "We are committed to providing our customers with outstanding service, providing partners with values, giving investors sustainable earnings, growth prospects and enormous positive effects to employees” American market In June 2014, Netflix unveiled a global branding: a new logo, using a modern typeface with drop shadow removal and a new website UI At the Consumer Electronics Show 2016, Netflix announced the expansion of major international services to 150 other countries Netflix has maintained the expansion, today it operates in almost every country where the company can legally or reasonably In 2017, Netflix was present in more than 190 countries 2007 Netflix begins streaming in the US 2010 Netflix starts to provide streaming services to international markets for the first time in Canada 2011 Netflix expands its services to Latin America, the Caribbean, Belize and Guianas Netflix begins expanding into Europe, launching in UK, Ireland, 2012 Denmark, Finland, Norway and Sweden 2013 Netflix decides to expand slowly to control subscription costs, only extended to the Netherlands 2014 Netflix is already present in Austria, Belgium, France, Germany, Luxembourg, and Switzerland 2015 Netflix expands to Australia and New Zealand, Japan, Italy, Portugal and Spain 2016 Netflix announces that it is available worldwide except for China, Syria, North Korea and the Crimean territory 2017 Netflix confirms it has reached a licensing agreement in China for the content Original Netflix with IQiyi Table 1: Netflix market expansion timeline By the end of 2019, the global number of Netflix subscribers reached 167.1 million, of which 61 million were registered in the US A survey in 2019 by Statista also found that 85% of Americans who use online video services are Netflix users Forecasts released at the end of 2017 show that by 2023, the US will have the highest number of Netflix subscribers in the world, with sources predicting a total of 69.1 million subscribers in the country Following closely will be the UK with around 12 million subscribers, while Mexico, France and India are expected to have fewer than six million Netflix subscribers by 2023 Figure 1: Numbers of Netflix subscribers in the US and globally from 2015-2019 (Source: Statista) II Theoretical background Definition of culture Culture is one of those terms that has a number of meanings to it and yet it is still notoriously difficult to define Clifford Geertz defines the concept of culture as follows: “It denotes a historically transmitted pattern of meanings embodied in symbols, a system of inherited conceptions expressed in symbolic forms by means of which men communicate, perpetuate, and develop their knowledge about and attitudes toward life” (Geertz, 1973) According to Geert Hofstede, culture is “the collective programming of the mind that distinguishes the members of one group or category of people from others [ ] the following four together cover the total concept rather neatly: symbols, heroes, rituals, and values.” (Hofstede, Hofstede and Minkov, 2010) Meanwhile, Zvi Namenwirth and Robert Weber see culture as “systems of ideas rather than behavior or material or material artifacts” (Namenwirth and Weber, 1987) Regardless, we should acknowledge the fact that cultures are unique in their own way and learn to respect them individually Just as world-renowned social psychologist Geert Hofstede once said: “National Culture cannot be changed, but you should understand and respect it.” Factors affecting culture (components of culture) a Language Language is an obvious and most prominent way to distinguish countries and also one of the characteristics that help define culture We can learn a lot about a certain culture as we learn a language As means of communication, there are two types of language: - Spoken language: helps demonstrate the way people perceive the world and acts as means of communication Spoken language has always been one of the defining factors of cultures There are about 7000 languages spoken today, showing the dynamic of the rapidly changing world - Unspoken language: refers to nonverbal communication Many nonverbal cues are culture-bound For example, giving someone a thumbs up in the US and some other countries shows that you are satisfied or are agreeing with him/her; however, in Greece, this gesture is considered to be obscene b Religions Just like culture, the definition of religion is still outstanding since there are too many meanings to it, some are quite ambiguous to be of value As to Clifford Geertz’s definition, he says a religion is: “a system of symbols which acts to establish powerful, pervasive, and longlasting moods and motivations in men by formulating conceptions of a general order of existence and clothing these conceptions with such an aura of factuality that the moods and motivations seem uniquely realistic.” (Geertz, 1973) Religion has a huge impact on people's daily activities, their behaviors and thus affects business activities Things like opening or closing times, holidays, ceremonies, taboos, etc must never be taken for granted Therefore, business operating activities or marketing activities must cater to the religion that is dominating the market in which the business is engaged in Businesses that are thinking of expanding internationally must at least pay attention to these four issues regarding religion: dominating religion; the importance of religion in society; the degree of homogeneity of religion; freedom of belief in society c Societal structure The Hofstede model of national culture is a composition of six dimensions These cultural dimensions represent traits and preferences that could most likely distinguish countries from each other Hofstede’s 6-D model allows for comparative research by putting together scores for each nation (with being the lowest and 100 being the highest on the scale) and thus facilitates cross-cultural communication and the international comparison between different cultures Figure 2: Comparison of India and the US according to Hofstede’s cultural dimensions theory (Source: hofstede-insights.com) The dimensions of national cultures are:  Power Distance Index (PDI) Inequality exists among the fact that everyone is unique PDI expresses "the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally" (Hofstede, Hofstede and Minkov, 2010), addressing the fact that individuals in societies are not equal but more importantly, how a society handles inequalities among people People in societies where there is high Power Distance are more likely to accept hierarchy and hierarchical order without doubt or further justification In societies with lower degree of PDI, people demand justification for inequalities of power and thus attempt to equalize the distribution of power India scores high on this dimension, 77, indicating prominent hierarchy and a top-down structure This is not only salient in Indian families but it is also a thing in a lot of Indian businesses where paternalistic leaders and managers assume the obedience of their team members and employees expect to be clearly directed and instructed on what is expected of them Communication is top-down and oftentimes negative feedback is never offered up the ladder Control is common, and attitudes towards managers are formal  Individualism vs Collectivism (IDV) IDV explores the “degree to which people in a society are integrated into groups” (Hofstede, 2011) Individualism can be referred to as the preference for a loosely-tied social framework where individuals are expected to take care of only themselves and their immediate families Collectivism represents a preference for a tightly-knit framework in society in which individuals can expect relatives or group members to care for them in exchange for almost absolute loyalty (the word Collectivism has no political meaning as it refers to groups, not to States) In short, an individualistic society is an “I” society whereas a collectivist society is more like a “We” society The relatively low score on Power Distance (40) and very high IDV (91) of the US truly speak for one of the most individualistic cultures in the world where there is an explicit emphasis on equal rights in all aspects of American society Communication is less formal; in fact, for most Americans it is quite direct and expressive Managers and employees both expect to be consulted by one another Employees are self-reliant and free to deliver their initiatives Americans are deemed to be independent quite early in life; they are not shy about approaching others and strive for one’s own right  Masculinity vs femininity (MAS) The Masculinity side in this dimension is referred to as “a preference in society for achievement, heroism, assertiveness and material rewards for success”, while femininity is "a preference for cooperation, modesty, caring for the weak and quality of life" (Hofstede, 2011) A masculinity society at large is “tougher” and more competitive whereas a femininity society is “tender” and more oriented towards living in harmony The American society is more on the Masculinity side scoring 62 on the scale This could probably be explained by the fact that it is one of the strongest nations as of now and thus with a diversified flow of labor, people are expected to carry the “strive to be the best” attitude in order to earn a place for themselves in this society India is actually quite Masculine as well in terms of success and power Advertising one’s success is widely practiced Work is oftentimes the center of life for many and being successful in the workplace could mean great respect from other people  Uncertainty avoidance Index (UAI) The Uncertainty Avoidance dimension expresses "a society's tolerance for ambiguity" - the extent to which members of a society feel uncomfortable with uncertainty and ambiguity In other words, societies exhibiting high scores on this index are somewhat stiff and tightly regulated People have strong beliefs in absolute truth and that it is guidelines and laws that are key to everything On the contrary, a lower degree of UAI implies societies with fewer regulations and more acceptance towards different thoughts and ideas Both India and the US have a low score on this dimension, indicating that there is a fairly high degree of acceptance of imperfections and new, innovative ideas People are open to trying new things and have greater tolerance of freedom of expression and of different ideas and opinions  Long-term orientation vs short-term orientation (LTO) LTO deals with the way that societies maintain the links with its own past while taking on the challenges of present and future As a matter of fact, societies prioritize these two goals differently Societies that score low on this dimension prefer to maintain and honor traditions and norms and are reluctant to societal changes On the other hand, high LTO societies usually take a more pragmatic approach: they encourage adaptation and changes for the better; and efforts are put in modern education as a way to prepare for the prosperous future Scoring low on this index (26), Americans may be open to new ideas and not reject them right away but they are prone to take time analyzing new information Americans are quite confident in a sense that they have strong beliefs in what they think is right; thus, with all that implicit bias, the analyzing process could take a long time One latest example is exhibited in the frustration of experts and authorized entities like CDC when trying to convince Americans of wearing masks to mitigate the spread of COVID-19 despite all the approachable studies and evidences already laid out in front of them No dominant preference in Indian culture can be determined This is because although Indians value traditions and ancestry, the concept of “karma” dominates Time is not linear and rather than opting for an exact life plan, one goes on discovering the right path as one goes along As a developing country where career success is respected, India is quicker to adopt ideas and knowledge to better their lives  Indulgence vs restraint (IVR) Indulgence stands for "a society that allows relatively free gratification of basic and natural human desires related to enjoying life and having fun" Restraint stands for "a society that controls gratification of needs and regulates it by means of strict social norms" (Hofstede, 2011) The score of India, 26, means that it is more of a Restraint culture Indians are more prone to working and control of desires Hence, indulging and leisure time are not their preference In contrast, the US is considered an Indulgent society Despite the aforementioned working attitudes, America is still one of those countries that are famous for its night parties and high rates of drug usage (Ritchie and Roser, 2018) III Impacts of cultural differences on Netflix’s business activities in India An overview of Netflix’s performance in the Indian market "India is one of our key markets," said Jessica Lee, Vice President of Communications of Netflix Asia-Pacific region claimed - "You look at the population size, the growth of the number of credit cards in India as of January 2017 was 28 million (RIB, 2017), an extremely modest number for a country of 1.3 billion people Aprita and Shveta Singh (2012) associated the relatively low number of credit cards used in this country to the daily consumption habits of the people In India, the vast majority of transactions are made in close proximity to a densely populated residential area, mainly debt purchases The two buying and selling parties often have a close relationship and the seller is willing to let the buyer owe money every time In this case, it seems the Credit card no longer works Another reason for such an unresponsive attitude towards more novel means of payment might lie in India’s social practices and division of labor The system divides the roles of men and women, men are responsible for the family spending in India, so usually only men can own the Credit card Figure 5: Number of debit cards and credit cards issued in India up to June 2020 (Source: Reserve Bank of India) After the arrival of Jio in 2016 - the telecommunications network company of billionaire Munkesh Amabani - making it more accessible to Indians As more and more people could access the internet at an extremely low cost, Indians gradually turned to online shopping for goods and services After years since Reliance Jio was introduced, the Internet provider has owned a subscriber platform of more than 250 million Ambani expects that India will have 4G nationwide coverage by 2020 India is also the second largest smartphone market in the world, second only to China, with more than 400 million users But that is only one-third of the country's total population, and a slew of smartphone makers are racing to accommodate the remaining potential users However, this does not affect the number of Credit card users in India, people still mainly pay with Debit cards and e-wallets because of concerns about security and feeling "expensive" and “unnecessary” when owning a credit card The fact that Netflix offers only one form of payment causes inconvenience to those who need to use the service but cannot pay because they not own a credit card Such customers choose different providers for their convenient payment methods, and in India’s case, transactions are carried out by cash primarily However, it is necessary to point out that over time, Indian consumers will have to adopt to newer and more innovative payment methods like the rest of the world The South Asia country is expected to rely less on cash and more on electronics payments - as is seen across numerous Asia-Pacific countries as well Figure 6: Growth in non-cash transactions in Asia-Pacific regions 2010-2015 (Source: McKinsey) Variety of languages requires diversity a Diversity in subtitle languages Figure 7: The number of Indian official language users in 2017 (Source: KPMG, 2017) There are total 270 identifiable mother tongues which have returned 10,000 or more speakers each, comprising 123 mother tongues grouped under the Scheduled Languages (Part A), which includes the 8th schedule specifying 22 official languages in India and 147 mother tongues grouped under the Non-Scheduled languages (Part B) Those mother tongues return less than 10,000 speakers each Regarding the 8th schedule, Hindi is the language which takes 43% to total population of India Other 21 languages are spoken by less than 10% of the population each (Office of the registrar general, 2018) These languages are recognized by the Constitution with different writing systems and backgrounds However, one language in each Indian state is chosen to be the official language for the locality The local language is a challenge but an opportunity for Netflix to be successful in India However, Netflix India only supports Hindi and English subtitles Last year, Netflix introduced the first localised version of its user interface in Hindi Netflix is now available in the Hindi language across all apps and devices, be it mobile, computers, or on TV (Arora, 2020) According to research by KPMG (2017), the number of people speaking dialects using the internet increased from 42 million in 2011 to 234 million in 2016 60% of whom answer that it is the limited language support to be the biggest barrier preventing them from using online services Figure 8: Number of English speakers and dialect speakers using the internet in years: 2011, 2016, 2021 (Source: KPMG, 2017) By the limitation of subtitles of options, English and Hindi, Netflix India hinders itself to reach nearly 40% left of internet users - about 135 million people These customers choose other movie apps that provide them language they understand and prefer to use Figure 9: Language wise internet adoption levels for Indian language users in 2016 (Source: KPMG, 2017) Among the dialects recognized as the official languages of the states, even though they are the most common in India, in 2016 the percentage of Hindi speakers using the internet was only 39%, behind Tamil with 42% b Diversity in content The language complexity in India not only adversely affects the number of Netflix users in terms of subtitles, but also negatively impacts the number in the content Netflix has achieved success in various markets by offering to its users "personally optimized" content Netflix relies on users' preferences to recommend them suitable content Individuals who share the same culture will have the tendency to choose similar content The number of movies or entertainment genres available on Netflix depends on "general trends" Therefore, each country will have its own content packages For instance, Vietnamese youngsters prefer Korean or Chinese romance films, thus, the frequency of these films shown is very high There are also many films announced on Netflix Vietnam, but these films are limited to Netflix US and European countries However, it is challenging to apply personal preference to Indian market Meanwhile, India is one of the leading countries concerning the film industry in the world Producing more than 2,000 films on average every year in 20 languages, India’s film industry is by far one of the world’s largest producers The total revenue of $2.1 billion in 2016 In India, the film industry's Gross Realization Value settles at $2.1 billion versus $11 billion in the US and Canada which produces a significantly lower number of films The domestic box office contributes to the majority of the revenue, representing 74% of the total (Deloitte, 2016) Even though Covid-19 may derail the revenue target by the end of 2020, industry experts believe that thanks to the resilient nature of the Indian film industry and its massive captive market, it will only be a temporary deviation rather than a permanent damage Indian film industry has developed regionally since 1970 Cultural characteristics associated with communities are expressed differently Hindi film industry came up with a mixture of genres like romance, thriller, comedy and today still dominates segments like music, TV across various regions in India Malayalam film industry is known for films that portray thought-provoking social issues (Kadhane.D, 2017) There is no sole "general trend" to talk about Indian film selection habits The diversity of content associated with each locality is the key to satisfy the audience Nevertheless, Netflix is unable to meet that requirement The Netflix US has a larger selection at 3999 films, 20% more than India’s, which submits 3,342 movies The large number of which are European-American movies, the number of Indian movies is much more modest (Hutchison, 2020) Content diversity is an important factor, especially for a country having a mixture of many cultures As a result, although many films, shows,… are produced to Netflix standard, which is highly praised for quality, Netflix is not their priority as a regular movie-watching service Indian opinion on price Netflix provides subscription plans, including Mobile, Basic, Standard, and Premium The mobile-only plan is priced at Rs 199 per month, the basic plan costs Rs 499 per month, the High Definition plan which lets you stream on two screens costs Rs 649 per month while the top-tier Ultra HD 4K four screen plan costs Rs 799 per month Users are not limited to viewing content, no advertising attached and the image quality depends on each subscription package However, these subscriptions are not as appealing to Indian viewers as Netflix expected The price is quite high compared to the spending habits of Indians, they can pay for similar entertainment services with more reasonable prices Cable TV packages in India are only under Rs 1000 / year, with access to many local and international channels Netflix rivals offer similar benefits to Netflix but with much lower prices: Hostar at Rs 199 / month; Voot is free at the moment Moreover, users can enjoy promotions like free shipping purchases on Amazon India, or ad-free on Amazon Prime music Quality doesn't match price: due to limited subtitle languages, limited amount of content provided, most viewers believe Netflix is not worth spending They are accustomed to enjoying internet services at a low cost and there are many other options to examine Thus, Netflix's price is the one of the culprits for the low user numbers in India IV Netflix’s adaptation strategy Natural differences have always been a challenge for Netflix’s entry strategy in the Indian market The company struggled when entering the video streaming market in India because of its slow start, which can be attributed to its higher prices and a shallow content library, compared with other local competitors According to Statista, Disney’s Hotstar, a massive popular streaming service in India, gained nearly 70% of market shares by the end of 2018, while Netflix’s market shares only accounted for 1.4% Figure 10: Share of videos streaming app installs in India, by company (as of 31 March 2018) (Source: Statista) After year since Netflix’s entry, it had grown significantly but it was still far behind other video streaming service players By the end of 2017, the Indian streaming market grew 116% in terms of the number of subscribers However, Netflix had only roughly half-million subscribers, which accounted for only 1% of 23.78 million members Netflix added worldwide in 2017, according to IHS-Markit It was recorded that there were only 4.2 million subscriptions to Netflix while Hotstar had a total of 63 million subscribers Netflix’s revenue in the Indian market (only 25.87 million dollars) was relatively low compared with its global revenue (11.69 billion dollars), at 0.22% Figure 11: Number of subscribers to selected video streaming services in India as of January 2017 (in millions) (Source: Statista) It is not easy for Netflix to succeed in a behemoth country like India, however, it seems that the company has learned its lessons from previous failures and started making modifications Contents and subtitles adjustments To reach out to the wider masses and to inculcate Indian habits and choices, Netflix has chosen to provide as much content related to the country and language of India as possible to be able to attract everyone and compete with other platforms India is home to more than 1.3 billion people who speak about two dozen different official languages Therefore, many multinational companies have an implementation of content production in local Indian languages to speed up market penetration Netflix first implemented the same strategy in India and with TV shows such as House of Cards, Stranger Things, and 13 Reasons Why but it could not create a habit pattern like in the US due to the strength of regional content producers In 2018, Netflix switched to local-language shows production strategy and quickly was followed up by Amazon Prize Netflix then realized the potential of the video-on-demand (SVOD) market and it understood that people would pay if original and exclusive content was offered Netflix recently has announced 17 new local originals, and many more are being prepared Netflix CEO Reed Hastings said that the company would spend $400 million (which represents an increase of 2.5 times its previous content budget) for Indian content in 2020, including original and licensed content This year so far, original films from India have been released Some of the new movies even include A-list stars working in Bollywood Among these, Lust Stories has set the record for the most-watched original in percentage terms in any individual market in its first month In an effort to better the situation, the company is now equipping its Indian executive team with people with a deep understanding of the market Netflix recently hired Monika Shergill as the creative head of its local originals Shergill joined Netflix from company Viacom (VIAB), which has collaborated with Netflix in movie production before Executives with great insight into the Indian market like Shergill can help Netflix accelerate growth in India's video streaming market Price adjustments As we know, Netflix’s traditional monthly subscription offering starts at 499 Indian rupees ($6.69), which restricts streaming quality to standard definition, and goes as high as 799 Indian rupees ($10.70), that supports simultaneous viewing (up to four) and streaming in ultrahigh definition (4K) According to Netflix, the average consumer in India spends less than $5 a month on a paid subscription TV, signaling that Netflix's current pricing strategy is out of the ordinary payability of many Indian consumers Since 2018, Netflix has tested several low-cost plans to court the Indian subscribers In 2018, it had a cut-price mobile-only subscription tested as it explores new packages aimed at widening its appeal in Asia and other emerging markets, which included India (During the test, Netflix charged users about $3.6 per month.) In 2019, during an event in New Delhi, India, Netflix announced a new subscription package exclusive to this country for a price of Rs 199($2.88) This is a one-user individual subscription applied for standard definition viewing (~480p) and subscribers can have the new plan on their tablets but with several features restricted, such as the ability to cast (or mirror) the content to a TV Early this year, Netflix unveiled a “Mobile+” plan that delivers streaming in high-definition (HD) quality and supports viewing across mobile, tablet, and computer screens (but not TV), with a monthly price at 349 Indian rupees ($4.70) According to Netflix’s spokesperson, since Indians mostly watch video on smartphones, the company wants to make it easier for them to enjoy Netflix and see if members like the new added offers Although the penetration of the internet through smartphones is accelerating exponentially in India, data usage and data speed are still limited Netflix can penetrate this market in regions that not have the subway by launching "App only subscription" for as low as Rs99 (about $1.3) each month for mobile devices requiring low-resolution content; hence turning it to an advantage and providing low-cost services to the public V CURRENT PROBLEMS SOLUTIONS AND SUGGESTED Results The differences in culture has been a hindrance to Netflix's Indian market infiltration More specifically, after several years of stepping their foot in the Indian market, Netflix only has 5% market share, not even in the top The first year of launching is especially bad with only 4.2 million subscribers (out of India's astounding billion people population) Netflix subscription number remained incredibly humble compared to the top platform Hotstar Figure 12 &13: Ranking of video streaming apps across India in 2019 & Number of subscribers to selected video streaming services in India as of January 2017 (in millions) (Source: Statista) Netflix revenue in this 1.3-billion-citizen country in 2019 accounts for merely 0.9% of Netflix total revenue Figure 14: Estimated streaming revenues of Netflix in India from 2017 to 2020 (in million US dollars) (Source: Statista) Problems and suggestions a Methods of payment adjustments Credit card usage in India is very low but debit card acceptance capabilities are extremely high Indians, therefore, find it inconvenient to use credit cards for media streaming instead of debit cards Even though Netflix offers a free month-trial to its users, the trial period is only available to users who have already registered with their credit card With India being a debit card oriented country, this can be a setback to Netflix In this situation, offering a free month of services without asking for financial information can help boost Netflix's impression and infiltration In addition, offering payment methods through debit cards or online wallets such as Paytm will also help Netflix create more flexibility for consumers b Netflix is insensitive towards Indian biggest religion - Hindu A Hindu group wants to ban Netflix Shiv Sena’s IT cell member Ramesh Solanki filed a complaint against Netflix India for “hurting Hindu sentiments” and showing an “incorrect picture of Hindus and India globally” by screening shows like Sacred Games, Leila, Ghoul, Hasan Minaj’s Patriot Act A group called Hindu Janajagruti Samiti also demanded a ban on Netflix #BanNetflixInIndia became a top Twitter trend on Friday Being culturally sensitive to one religion group can potentially make Netflix insensitive to others Netflix can mitigate the situation by offering more Hindu based contents to cater for the taste of devoted Hindu followers Banning blasphemous or potentially insulting contents on Netflix India is a good idea to lessen the number of criticisms received In specific, Netflix can hire Indians of various religions as Netflix India's content administrator That way, Netflix contents will be politically correct and well regulated c Numerous debates Netflix India has also sparked numerous debates about being culturally insensitive towards Indian culture and traditions Netflix original reality show “Indian Matchmaking” about arranged marriage has drawn criticisms about the portrayal of the practice as well as seemingly normalizing gender stereotypes, colorism, and casteism The makers of the show are facing a backlash on social media for failing to challenge the regressive beliefs that participants espouse openly Families also make insensitive comments and judgements about the participants as well as asking rude questions such as one's performance in bed The 57-year-old elite marriage consultant is being criticized as well Female participants were reportedly encouraged to be submissive and compromise: when Aparna, a female lawyer, rejected her first match because he was unambitious, she was described as negative and headstrong “Indian matchmaking” was also criticized for favoring people with “fair skin" (aka paler skin) In India, colorism is rampant The faces of popular celebrities and billboard models are typically light So darker-skinned Indians are made to feel insecure - and also face discrimination An Indian - American participant in the show said she was looking for someone “not too dark, you know, fair skinned" First thing Netflix should is halt the production of the show, and issue an official apology The show is conceptually wrong and it also took part in promoting colorism, casteism, and women discrimination Netflix also needs to pay more attention to its contents so as to avoid future problems It can invest more money to create a stronger team of content moderators to take down toxic and negative shows and movies The board of directors should also be more conscious and avoid funding such projects d Viewers’preferences Indian Netflix did a poor job of analyzing and predicting their viewers' preferences Indian Netflix content is subpar: The highly anticipated Sacred Games: Season - the mostwatched show on Netflix India in 2019 - didn't live up to the hype after an impressive first season Drive - a Netflix original movie - has an IMDb rating of just out of 10 Another Netflix film - House Arrest bit the dust and ended up with an IMDb rating of just 5.6 It is clear that Netflix content in India is poorly invested Netflix needs to make wiser investments by putting more resources in script writing and movie production, hiring famous, talented actors and celebrities; as well as promoting the show to the mass audience CONCLUSION The Netflix case has proven that cultural differences have a huge impact on the business situation of multinational enterprises Culture is an important factor for businesses to carefully grasp to understand consumers and then make appropriate adjustments in product/services in new markets REFERENCES: Arora, A., 2020 Netflix Is Finally Available In Hindi [online] NDTV Gadgets 360 Available at: DanSo.Org 2020 Dân Số Ấn Độ Mới Nhất (2020) - Cập Nhật Hằng Ngày - Danso.Org [online] Available at: Data.worldbank.org 2020 India | Data [online] Available at: Deloitte, 2016 Indywood: The Indian Film Industry Factor affecting credit card using in India - 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