Ziwe Controversy & More: Is Netflix India in St(r)eaming Hot Water?

Ziwe Fumudoh's show had a format of an awkward interview that would discuss pressing issues like race and politics.

When we say, “Imitation is the sincerest form of flattery...” we must recognise that there are limitations. This is pretty much the sentiment that several people on Twitter echoed after comedian Brittani Nichols drew attention to the similarities between Netflix India’s YouTube segment Not-So-Awkward, and Ziwe Fumudoh’s talk show. 

A controversy and a struggling business model, is Netflix in hot water? At least in India?

Nichols, who is also a writer on Abbott Elementary, shared pictures from both sets and wrote, “This is NUTS. I’m enraged on Ziwe’s behalf. @netflix should be ashamed.”

This is NUTS. I’m enraged on Ziwe’s behalf. @netflix should be ashamed. pic.twitter.com/iyG430MHrS

— Brittani Nichols *Strike Version* (@BisHilarious) April 28, 2023

Imitation VS Flattery

Ziwe became popular for a satirical talk show format wherein she would ask her guests increasingly ‘uncomfortable’ questions about race, politics, and privilege.

As is evident from the name, the 'uncomfortable' theme also made it to the Netflix India show (the video is now unavailable), with no attribution. Ziwe herself posted the comparisons on her Instagram and followed them with a meme from her show with the caption [stares in black girl confusion]. 

Of course, Ziwe doesn’t have a copyright on awkward interviews (case in point, It is not unnatural for content creators to be inspired from others or create segments based on inspiration but soon, the similarities between the two shows in question became rather…questionable. One user pointed out that the set design even had the same ‘squiggly lines' as Ziwe’s show.

Additionally, Mohanraj’s comedy, from her Comicstaan days, has been exactly like her persona on the show. A few have defended the show by saying that the set design 'changes frequently'.

Most of the criticism has been leveled at Netflix. And it couldn’t be coming at a worst time for the streaming service since Netflix India's OTT strategy took some time to get accustomed to the Indian market.

While it’s difficult to pinpoint why, there are some potential reasons.

At the beginning, Netflix saw success in India since they were targeting a niche audience, the urban elite. And they were successful but that is perhaps why subscriptions soon plateaued. 

As the Executive Chairman of Netflix, Reed Hastings said on an investor call in 2022, 

"The great news is in every single other major market, we've got the flywheel spinning. The thing that frustrates us is why we haven't been as successful in India. But we're definitely leaning in there.” 

Reed Hastings

After initial success with Sacred Games, Netflix started to struggle in the name of content. But even before we get into that, there was one primary problem. 

Money, Money, Money

Something that won’t come as a surprise to many is that when Netflix entered the Indian market, it was too heavily priced for its audience. If the streaming giant had paid more attention to the widely differing purchasing power across India, their pricing model would’ve been more affordable; especially considering that they didn’t have a first-mover advantage. 

While Hotstar came to India in 2015, both Netflix and Prime Video launched in 2016.

Two of Netflix’s competitors were more affordable, which was perhaps the first thing people checked back then since the OTT boom, which pushed the ‘content rules’ phenomenon, hadn’t happened. 

Netflix did try to course correct back in 2019 by introducing a mobile-plan that was priced at Rs 199 monthly. Now the streaming service is priced at Rs 149 for mobile and tablet users and Rs 199, Rs 499, and Rs 649 monthly for the basic, standard, and premium plan respectively. Considering that Netflix doesn’t have an annual subscription option, you would spend at least Rs 1788 per year.

When it comes to the competitors, Amazon Prime is priced at Rs 1499 per year and Disney+ Hotstar costs either Rs 899 (Super) or Rs 1499 (Premium) per year. Additionally, a Prime subscription covers both content and its shopping arm (the latter’s popularity and profit perhaps helps offset the lower costs) and Hotstar required rights for several sports shows early on. 

Globally, Netflix reportedly saw a decline of more than 50% in the net additions in 2021. 

What Does India Want to Watch?

Netflix India simply did not have enough regional content. In the West, Bollywood was one of the major, if not the only, film industry India was known for for a long time. However, within the country, regional cinema was beginning to gain traction even before superhits like RRR.

Other than Sacred Games, which was a Netflix original, the streaming platform also saw success with Kota Factory, a show that wasn’t big budget or flashy but instead was a property of The Viral Fever. Other shows that work for Netflix are ones like Indian Matchmaking, Squid Game, or Money Heist, all of which are either international offerings or cater to a more diaspora audience. 

At the same time, competition continued to increase substantially with players like SonyLIV, MXPlayer, Zee5, and Voot (which had Bigg Boss!) entering the market.

Amid all of these, Netflix was still seen as a service that caters to tier-1 cities even though tier-2 and tier-3 cities have a much more diverse audience base. 

Netflix did try to make changes by trying to focus more on India-focused content, evidenced by the likes of Minnal Murali, Delhi Crime, Darlings, Trial By Fire, and Jamtara. More frequently than not, Indian (primarily regional content) enters the Top 10 category showing on the streaming website.  

Notably, this shift to focusing on regional content wasn't without it's successes. The aforementioned titles performed well with co-CEO Ted Saranos remarking that 2023 was 'more successful in India in terms of growth' and that the platform saw a '30% rise in revenue' by the end of 2022.

Prime Video wasn’t far behind with massive successes like Panchayat, Mirzapur, and their bet on up-and-coming directors Raj and DK who created The Family Man and Farzi. 

To wrap things off, Netflix did enjoy a global first mover advantage back in the 1990s as an innovative rentals service. The demise of its competition Blockbuster became a widely consumed case study about the marketplace.

Even as the latter filed for bankruptcy, the former continued to adapt and launched a subscription model. 

And now, as the world of OTT rapidly changes, that same intuition and grit is the only thing that will help Netflix retain its place in the digital world. 

Earlier this year, Netflix announced a slate of some of its most popular shows that will be returning with new seasons (Delhi Crime, Fabulous Lives of Bollywood Wives, Kota Factory, and Mismatched for instance).