Video-streaming giant Netflix in India has reportedly grown over 700 percent in the past 12 months, with the help of an ever-increase catalogue of local content. While the company doesn’t share these details publicly, an ET Tech report, quoting the company’s filing with the registrar of companies paints a rosy picture for the platform.
The report says that Netflix India’s revenue has soared to Rs 466.7 crore, with a net profit of Rs 5.1 crore. It’s believed that Netflix is picking the fruits of its local partnership and operator-based carrier billing for its users in the country.
Netflix has created shows like Sacred Games and Bard of Blood with help from Indian production houses but ensuring it has marketable value abroad. The report also highlights that Netflix India, as per the latest industry figures, has got over 1.2 million users as of March 2019, which is not bad for a paid streaming platform in the country.
Its subscriber base is likely to see a big increase with the launch of the mobile-centric plan, which starts at Rs 199 per month. It’s the cheapest plan Netflix offers anywhere in the world. This plan allows users to view content on either their mobile phone or tablet but one cannot stream content on multiple devices at the same time.
It’s a mix of a smart pricing strategy and local content that has helped Netflix pick up higher stakes in the crowded Indian streaming market since last year.
And it’s possible that Netflix might add a few more plans of similar prices to its line up, to make the competition even more intense with Amazon Prime Video and Hotstar.
But more than anything else, Netflix has joined hands with Vodafone and Airtel to offer bundled streaming access, which ensures you add more users without really investing in acquiring them. In addition to all this, Netflix paid a premium to get hit shows like ‘Friends’ and ‘Big Bang Theory’ and these investments will most likely garner returns for the company in the coming years.
For now, Netflix will be hoping that lowering prices works in its favour, without draining its coffers.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)