- FY20 revenue from Netflix India grew two-fold, primarily supported by Indian content and a low-cost mobile-only plan.
FY20 revenue from Netflix India grew two-fold, primarily supported by Indian content and a low-cost mobile-only plan. The company posted a revenue of Rs 923.7 crore and a net profit of Rs 8.9 crore, according to the video streaming platform’s filing with the Registrar of Companies ( ROC).
As reported by the Economic Times, Netflix India posted a 700 percent jump in its turnover to Rs 466.7 crore and a net profit of Rs 5.1 crore in FY19, as per the filing sourced from data insight company, AltInfo.
With data plans becoming more accessible, online content consumption in India has seen massive growth. In India, data prices are among the lowest globally.
As part of its global rollout, the American streaming giant forayed into the Indian market in January 2016. However, when it started commissioning content, the company was initially registered as a Limited Liability Partnership ( LLP) in April 2017.
Reed Hastings, CEO of the video streaming site, said last year that Netflix will spend Rs 3,000 crore on Indian content in 2019 and 2020, and in the last three years, it has introduced about 40 OTT (over-the-top) services.
The company has over 100 employees in India, according to reports, and has about 2,5 million paying subscribers in the region.
Though Netflix plays in the premium streaming space, along with other local players in the Indian market, it competes with the likes of Amazon Prime Video, Hotstar, and even YouTube.
Netflix aims to give its users in India access for a weekend to stream its vast catalog free of charge. This will be part of a test to extend the country’s scope despite the sluggish growth of the OTT platform for the quarter ended September.
Although the company stopped providing free access to new users in the US for the first month, it plans to continue experimenting with new ways to carry users to other parts of the globe, TechCrunch said in a report. One of these forms, the tech site said, was to offer access to Netflix in multiple markets at no charge for a weekend.
India is a favorite market for Netflix when it comes to experimentation. Before starting in about a dozen markets, the platform had tried a $2.7-only monthly plan in India. In India, it further tested more pricing plans.
Competition in the video-on-demand space has intensified as data tariffs have dropped dramatically in the country, especially after the launch of Reliance Jio ‘s services.
Players like Yupp TV, Hungama, and ALTBalaji are aggressively expanding their library to tap into the Indian market with original programming.