By G. Sharmila
US-based Internet TV service provider Netflix has finally arrived in Malaysia, albeit a little earlier than many viewers expected. Its arrival has generated a lot of buzz on social media and in the media in general. But the big question is: will it have staying power?
Last week, Internet TV service provider Netflix announced that it had gone live in a number of countries globally including Malaysia, taking the market by surprise. Tiger had heard rumours that Netflix would come to this region in the middle of this year, so even she was caught off-guard by the sudden arrival of Netflix in Malaysia.
The arrival of Netflix is a cause for celebration for many local TV and movie buffs, Tiger is sure. And at RM33 a month for a basic package, it is cheaper than subscribing to pay-TV services like HyppTV and Astro, which will draw many viewers. Plus it has the Netflix brand behind it, and branding is a mighty thing in the eyes of viewers.
However, Netflix has still to contend with rival iflix, which charges around RM10 a month for its Internet TV service. Although iflix’s library content is not as extensive at Netflix’s at present, its price point is very attractive for content-hungry and cash-strapped Malaysians. Tiger thinks that for the Malaysian and other Asian markets, Netflix may want to offer a “light” version of its offerings, at a price point that is no more than RM10 a month, if only to rake in the subscriber numbers.
Apart from its more attractive pricing, iflix also offers a selection of local content and has also tied up with production companies in the countries it is in to produce original TV series. This is something Netflix has done in the US, but currently all the content available to Malaysian subscribers is American. This could certainly put off many a Malaysian or Asian who wants to watch shows in his or her native language or at the very least are Asian-centric.
Netflix, however, appeared pretty confident that the market is big enough for multiple players. In an email reply to Tiger on the competition in the Malaysian market, it said: “Because the entertainment market is so broad, multiple brands can be successful. Many people will subscribe to several services (including Netflix) since we have different, exclusive content. The transition to Internet TV, with its greater consumer satisfaction, will mean growth for many Internet TV services.”
Another issue that Netflix will have to deal with is that of censorship. Tiger has anecdotal evidence that some of Netflix’s more risque and violent TV shows are not available to Malaysian subscribers. This will doubtless anger many discerning and educated viewers who want to watch uncensored content as they are paying for an Internet-based service that should not be censored. After all, if the content is censored, however minor, a TV viewer may choose to subscribe to HyppTV or Astro, where content is censored anyway.
When asked if it censors or plans to censor its contents to Malaysian subscribers, Netflix replied rather vaguely: “We also remain sensitive to preferences of members where we operate. Netflix will continue to make market-specific decisions based on the preferences of our members. You may see some content behind a PIN in certain markets where such a practice is expected by our members or required by applicable law.”
It added that as an on-demand service, Netflix allows people to choose to sign up and decide what, where and when to watch. The service, it said, includes ratings guides and episode synopses to help people make informed choices about what is right for them and their families.
Last but not least, the biggest enemy Netflix will have to deal with in Malaysia and this part of the world is piracy. If it chooses to censor its content and continues to charge RM33 a month, Netflix may very well end up losing viewers to pirated versions of its content. Prior to its availability in Malaysia, many Malaysians were accessing Netflix illegally through virtual private networks and doubtless many would have been downloading the TV shows through torrent sites. If Netflix doesn’t tweak its strategy in Malaysia and other Asian markets, it will only worsen the problem.
If it can find a way to overcome the “pain points” outlined above, Netflix stands to be wildly successful in Asia, perhaps even more successful than it has been in its home country. The key is staying power and the Internet TV service provider needs to realise the importance of pricing and localisation to make its Asian dream a reality.
GRRRRR!!!
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