iWorld
Netflix a damp squib; broadcasters long term gainers: Edelweiss
MUMBAI: While the world is going gaga over Netflix’s simultaneous launch in 130 countries across the globe including India, financial services company Edelweiss is not too impressed, at least in the medium term.
So when all and sundry are trying to predict and second guess the impact Netflix’s launch will have on the over-the-top (OTT) scene as well as on the broadcast industry in India, according to Edelweiss, the impact of Netflix in India will be limited on direct to home (DTH) and cable TV players over the medium term.
Citing the reasons for the same, Edelweiss lists:
1) Netflix does not have local content
2) Free content is easily available on Erosnow, Hotstar, YouTube
3) Steep pricing at 2-3x prevailing cable TV/DTH rates
4) Broadband speed beyond top cities will be a huge challenge
5) Lack of India cricket matches
The Indian pay TV market is on its way to embrace OTT platforms, especially for sports content, following increasing usage of internet. According to the company, this will be an additional source of revenue for broadcasters like Zee, Sun TV and TV18 over the longer term. “However, most broadcasters already have their OTT platforms and are yet to sign content deals with Netflix,” the company said in its report.
A successful OTT in US:
Netflix is a successful OTT in US as cable TV ARPU is $60 per month versus Netflix’s ARPU of $20-24. Secondly, the US has higher broadband penetration (~80 per cent) with good speed; and original content is dished out by Netflix. However, in India, Netflix currently lacks these advantages.
“Hence, we do not expect Netflix to have any major impact on Indian DTH/cable TV players over medium term. Netflix has a long way to go before tasting success in India,” Edelweiss said.
Pricing, slow broadband key challenges in India:
As was reported earlier by Indiantelevision.com, in India, Netflix’s subscription rates are Rs 500, Rs 650 and Rs 800 for basic, standard and premium packs respectively. “These are 2-3x the prevailing cable TV/DTH rates. Besides, broadband will entail additional costs,” the report added.
Internationally, Netflix has done well riding attractive pricing, which is almost half the cable TV/DTH rates, and original content. While the company currently does not enjoy these benefits in India, in a bid to attract subscribers, it is offering free services in its first month of operations.
According to Edelweiss, plans are also afoot to facilitate streaming via laptops, TV, smart phones and tablets. “However, we believe in India where subscribers pay ~Rs250-450 per month for cable TV (includes sports channels), Netflix’s rates are on the higher side. Broadband speed will also be a challenge. Netflix requires minimum speed of 512kbps and recommends 3mbps speed for SD content and 5mbps for HD videos, which further limits its expansion plans,” the report said.
Sports missing, India savours diverse content:
Netflix is currently beaming international TV shows in India along with English and Hindi movies. “The company is currently not offering local content. Sports content, the main driver of the OTT platform, is also not offered. With India being a country with diverse culture it consumes content in eight different languages. Currently, Netflix is beaming only English content which will attract only niche audience,” the report added.
With Netflix’s subscription price being by far the steepest in India as compared to competition, some of whom even offer content for free on their platform, it remains to be seen whether other players up their price, match Netflix’s or continue to offer content at a lower price. That said, with growing competition in the space from the likes of Arré, ALT Digital, DittoTV, ErosNow, HOOQ, Hotstar, Netflix, nexGTV, Sony Liv, Spuul, Voot and YuppTV, Netflix’s content strategy in the near future will be the key differentiator, which will separate the best from the rest.
Gaming
MTG gaming chief Benninghoff joins NODWIN board as esports firm primes for IPO
The Gurugram-based esports firm is pursuing a public listing, has returned to profitability and is growing revenues by 42 per cent
GURUGRAM: NODWIN Gaming is moving fast. The Gurugram-based gaming and esports company has launched a pre-IPO fundraising round, appointed UBS as lead adviser for both the round and a subsequent public listing, and landed a heavyweight board director, all in one go.
The new board member is Arnd Benninghoff, executive vice president of gaming at Stockholm-listed Modern Times Group (MTG), who has overseen the group’s strategic investments and portfolio growth since 2014. He is no stranger to building things: Benninghoff has founded and built fifteen companies, served as chief digital officer at ProSiebenSat.1 Media AG, managing director of SevenVentures, and chief executive of Holtzbrinck eLAB. He began his career as a journalist at Deutsche Presse Agentur and various TV networks, holds a Diplom-Kaufmann in business and administration from the University of Münster, and previously sat on the board of Edgeware AB.
The numbers back the ambition
NODWIN is not pitching a story without substance. The company has returned to EBITDA profitability and posted a 42 per cent year-on-year revenue surge, reaching $58.5m in the first nine months of FY2026. The pre-IPO round will combine a primary issuance to fund global expansion through organic growth and acquisitions, alongside a secondary sale to give existing shareholders some liquidity.
Akshat Rathee, co-founder and managing director of NODWIN Gaming, said Benninghoff understands “the entire lifecycle of the gaming and media ecosystem, from the boots-on-the-ground reality of building startups to the strategic complexity of managing multi-billion dollar global portfolios.”
Benninghoff, for his part, said the company “sits at the intersection of sports, entertainment, and technology, making it one of the most exciting players in the global gaming landscape today.”
A portfolio built for the global south
Founded in 2014 by Rathee and Gautam Virk, NODWIN has quietly assembled one of the more compelling esports portfolios outside the Western hemisphere. Its properties include DreamHack India and Comic Con India, and it recently acquired StarLadder, the Ukraine-based tournament organiser behind premier events in CS:GO and Dota 2. The company also serves as a long-term strategic marketing partner for the Evolution Championship Series (EVO), the world’s most prominent fighting game tournament, helping push it into new geographies.
Its geographic focus spans South Asia, Central Asia, Southeast Asia, the Middle East and Africa. Backers include Nazara Technologies, KRAFTON, Sony Group Corporation, JetSynthesys, and the founders’ investment vehicle Good Game Investments.
What comes next
With UBS running the books, a board freshly reinforced with European media and gaming expertise, and revenue heading in the right direction, NODWIN is laying the groundwork deliberately. The esports industry has burned investors before with big promises and thin margins. NODWIN’s return to profitability, combined with a real portfolio of owned intellectual properties across gaming, music and youth culture, gives it a more credible runway than most. The IPO clock is now ticking.
