Netflix is using technology disruption — SVOD or streaming video on demand. Netflix has acquired 50 million subscribers in the US over the past ten years. It has 100 million globally. The loss of conventional TV companies is not much, which means most consumer’s use both the services. Still, there is a shift towards new platforms such as Netflix and that is scary for conventional linear TV. The data adjusted for demographics is scarier — the younger audience has the most loss of viewership. Older citizens are actually watching more TV. Netflix spends heavily on content, except sports content. It will account for more than 20 per cent of global non-sport content spend. All this yields viewership.

In India, the situation is different. In the US, pay TV is expensive, and at $ 10 per month, Netflix is great value. In India, cable TV and DTH are cheap.

Here content is owned by the broadcaster and not the studio. Will the broadcasters licence the content to Netflix? It will take years to build a library of content. Even Internet access here in India is through wirless and mobile. A streaming business cannot be built on wireless broadband. In India, Netflix is not an immediate disruptor.

As you know, France is the birth place of films. They resist the business model of Netflix which finances less commercial  arty films. France wants a film to be released in theatres first, at least for three days, and then expects it to be released on internet. If a film is never shown in cinemas, is it still a film? Netflix disregard for releasing films in cinemas wins it few friends. Its comedy drama The Meyerowitz Stories got standing ovation at Cannes, and still there were cries of protest.

Netflix alone generates more revenue than the entire North American box office. Streaming wars began on April 2, 2010, a day when Netflix app appeared on Apple iPad. Soon it spread to fit into our pockets. It tied up with Star cable channel. It had access to thousands of films, including hits made by Disney. Soon at reasonable price, it became an alternative to cable TV.

Mergers of media companies followed. Murdoch sold off most of his companies to Disney. Many other companies on the lines of Netflix appeared after these mergers. All this cord-cutting and consolidation redefined the media landscape.

The erstwhile media moghuls are retiring. The road ahead is uncertain.