The world rsquo s largest online paid TV network Netflix may look at tweaking its premium strategy f...........

Logical Reasoning(SBI-PO) Statement and Infrence

The world’s largest online paid TV network Netflix may look at tweaking its premium strategy for India, as it finds itself lagging behind Hotstar and YouTube in the booming over-the-top (OTT) market. The US-headquartered company, which currently derives most of its streaming revenue from outside the US, may enter lower priced segments to attract new subscribers. When asked about the Indian OTT market during the June-quarter earnings call. ‘We’re way behind YouTube, Hotstar. Those are really the leaders on internet’.

Which of the following can be deduced from the above information?

In India, Netflix competes with a host of OTT players, including Amazon Prime Video and Star TV-run Hotstar that charge lower subscription fees.

Hotstar, for instance, follows a hybrid subscription model and charges viewers for only premium content. In contrast, Netflix, which has invested heavily in producing slick shows in regional languages for the Indian audience, addresses affluent viewers at a hefty premium.

India will enter the top 10 largest global OTT video markets by 2022 with revenue of over Rs 5,500 crore.

A market like India has three-or-four different sort of growth patterns due to different demographics and segments and Netflix may address them one after the other.

None can be inferred.

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Explanation:

The correct answer is option 1, i.e. In India, Netflix competes with a host of OTT players, including Amazon Prime Video and Star TV-run Hotstar that charge lower subscription fees.

We first make sure to read the statement carefully and then see what immediate inferences can be drawn based on our first reading. The next step is to look at the statements given in the options, analyze them and see if they seem relevant with respect to the information/data provided to us. Option 1 is the most evident answer choice and is a perfect deduction that can be made from the given statement. From the statement it is evident that Netflix is competing with many players that offer subscription at low charges. The hint to this is evident from the statement which says ‘may enter lower priced segments to attract new subscribers’, from this we can deduce that earlier it was not charging as low as its competitors but now it may bring down its prices to compete with the other players. Option 2 and 3 can be rejected because we cannot deduce anything from our side and the information provided in both the assumptions cannot be deduced from the given statement. Option 4 can also be rejected as it is also not based on the information stated and states an independent fact regarding the growth patterns. The option closest in meaning to this is option 1. All the other options seem irrelevant with respect to the data provided in the statement.

Hence, the correct answer is option 1.