I had the chance to test Netflix network as a Beta Tester in my company few weeks before the launch. So here are some of my thoughts -
1. It has large database of movies from around the world. In future copyright issues may limit the movies as many movie makers will expect royalty to run those flicks in India. As in India rule states that you can't run movies for free on streaming. Even hotels in India pay royalty to music association companies for playing music during 31st Dec and other festivities.
2. The amount of bandwidth it consumes can show you that you need really expensive unlimited internet connection. e.g. I streamed one horror Korean movie for 1 hour, which took around 3GB of data. You can guess how much expensive it'd be on mobile. Also the broadband line plans at home would require more expensive plan if it crosses the data threshold.
3. Censorship is rampant in India. And Netflix has reputation of creating or sponsoring shows such as Game of Thrones, Jessica Jones and The Affair. Which has some explicit content, not suitable for kids and even conservative families won't like it. So most probably India will be the first country to censor Netflix.
Survival of Netflix is possible in cities like Pune, Delhi, Bangalore and other metro cities where there is high speed internet connection.
Services like Netflix, Hotstar etc has the capacity to destroy TV because we are forced to watch content on TV. In case of such services, we get control over what to watch and avoid. So Netflix definitely has a future in India, a bit slow growth due to internet speed and censorship. But it'll survive and adapt to desi people.