iflix - more than just a poor man's Netflix

Company's strategy of focusing on emerging markets and local content paying dividends

KARACHI: Available at a monthly rate of Rs300 and boasting a package of local television shows, iflix can be described as a poor man's Netflix. But it is more than that.

Its strategy of entering emerging markets, where the world thinks the next growth story lies, and focus on local content makes it a worthy competitor even in places where the US-based giant had the first-mover advantage.

With notable successes in countries such as Malaysia, Thailand and the Philippines, iflix is a perfect example of "glocalisation". During a recent interview, iflix Pakistan General Manager Farees Shah indicated the company's philosophy.

"We will never go to North America, Europe or Australia, but, in the coming months, we will be expanding in the regions of the Middle East and Africa," he told The Express Tribune. "We recently launched in Vietnam and Myanmar and as you must know Indonesia is our largest market."



The statement sheds light over the Malaysia-based startup's agenda. It knows that it isn't the first website to provide streaming service in the world, and it certainly won't be the last. But it aims to explore and exploit the niche market that is overlooked by giants like Netflix and Amazon - a market which consists of 35 million prospective consumers in Pakistan alone.

This allows iflix to adapt itself to the requirements of Pakistani consumers. And while sceptics might argue that streaming services don't have a future in Pakistan due to a plethora of reasons which include poor internet connections and availability of pirated content, let it be known that the Malaysia-based startup gathered around 100,000 subscribers in its first month in the country.

Let's take a detour here to elucidate on this point with the example of Careem v Uber debate -something which would strike a chord with most readers. Although Uber is a pioneer of the service around the world, it has been largely overshadowed by Careem due to the latter's hands-on approach in Pakistan. The UAE-based service has ensured passengers' security - a huge concern - by educating drivers about issues such as harassment. On the other hand, Uber's universal policy of acting as the middle-man for drivers and passengers has hurt them in their ability to capture a larger market share in Pakistan, despite their lower rates.



Unlike Netflix, which is operating under its universal guidelines, iflix has tweaked its business model to immerse itself in the Pakistani market.

The presence of local content on iflix serves as its principal driver in Pakistan and Shah cites it as the main reason for the company's exponential growth in the first few months.

"When we set our operations in January, I wanted 30,000 subscribers during the first few months," he said. "However, within one month we had already obtained more than three times the target."

iflix got 100,000 subscribers in the first month of its launch alone, a number over three times the expectation of Shah, with the help of 19 Pakistani television shows, which include hits like Mann Mayal, Bin Roye and Mol. The number of shows is a monumental increase for online watchers when compared with Netflix, which features only four local shows.

"Our ability to offer latest local content makes us unique in the market," said Shah. "Coupled with this, we are presenting content using a methodology which becomes convenient for consumers as they don't have to adhere to a television schedule anymore. They can view their favourite programs whenever they want to."



Nevertheless, this is not the only quality which sets iflix apart from its competitors. The low cost and alternative payment method contribute to the company's success as well.

The service is currently priced at Rs300 per month or Rs2,800 a year after a trial month, whereas Netflix charges upwards of $7.99 for its services, a total that goes over Rs840. Also, while a customer needs to pay the subscription fee using a credit card in Netflix, he or she can opt to pay via debit card or mobile credit in iflix.

"Rs300 per month is the standard rate at which most television cable providers are operating in the country, so we are providing with a legal and convenient way of watching content online," said Shah.

"Moreover, since in Pakistan not everyone owns a credit card, we have allowed for payments to be made using a debit card or mobile credit to broaden our base of prospective consumers. "Currently, only Telenor and Zong users can utilise the facility, but we are planning with various service providers on the matter too," he added.

The Na Maloom factor

According to iflix Pakistan's general manager, the most viewed content on the website is 2014 Pakistani comedy movie Na Maloom Afraad, which provides a nuanced understanding of the whole business.

"When someone asks 'who is your largest competitor in the market', I always say that it is piracy because if consumers are unable to download content for free, then their next best alternative would be whatever the cheapest option is," said Shah.

"For instance, our most watched content is Na Maloom Afraad and that is because once a Pakistani movie is off the cinema screens, there isn't any other option for moviegoers to utilise. Piracy of local movies has been curbed by its strict distribution process, allowing iflix to provide an exclusive content online," he added.

Future prospects

Despite all the positives, Shah said that iflix still has room for improvement in the Pakistani market by focusing more on mobile devices and providing a personalised space to each subscriber.

"Currently the market is dominated by mobiles, with 60% of the website traffic coming from handheld devices," he said. "So, we are working towards improving services on these devices, along with a personalised interface for each user which will provide them with suggestions based on their viewership history."

And talking about profitability, the general manager believes that with $90 million funding to cover short term expenses, iflix can be the next big company in Pakistan. "Our main focus at the moment is to provide a service to the Pakistani audience, which they can't have enough of - that in turn will drive revenues for us."