For Netflix, India became the second largest market in terms of addition of paid subscribers in the June quarter of 2024, driven by a strong content slate in the country.
In a letter to shareholders, Netflix also stated that India was the third largest country for the streaming giant in terms of revenue percent growth for the quarter. The company however didn't disclose any specific subscriber or revenue numbers for the Indian market.
Netflix added 8.05 million subscribers across the world during the second quarter of 2024, out of which 2.83 million users came from the Asia-Pacific (APAC) region. The APAC region, which includes India, was Netflix's biggest geography in terms of member additions.
The region's revenue grew to $1.05 billion, up 14.5 percent from the same quarter last year. Netflix's overall revenue rose to $9.56 billion for the quarter, a 16.8 percent growth over last year.
In April, Netflix stated plans to stop reporting quarterly paid membership additions from Q1 2025. This is because the company said it now has multiple pricing tiers across various markets due to which each incremental paid membership has a different business impact.
"We're focused on revenue and operating margin as our primary financial metrics — and engagement (i.e. time spent) as our best proxy for customer satisfaction" the company had earlier told shareholders.
What's driving Netflix in India?
The growth in India was driven by big successful original titles such as Sanjay Leela Bansali's Heeramandi: The Diamond Bazaar and Imtiaz Ali's Amar Singh Chamkila during the quarter, Netflix said in the shareholder letter.
Licensed films such as Kiran Rao's Laapataa Ladies and the Ajay Devgn and Madhavan-starrer Shaitaan also helped the growth of the streaming service in the country.
In the letter, Netflix mentioned that Heeramandi was Netflix's biggest Indian drama series ever with 15 million views during the quarter. The title was renewed for a second season in June. The Diljit Dosanjh-starrer Amar Singh Chamkila also registered 8.3 million views during the quarter. Netflix defines a view as the total hours watched for a title divided by its runtime.
"I think India's growth is a story that we see around the world playing out similarly. So you look at the content, the product market fit is what drives our ability to attract members and retain members and monetise with them as well... If we pick them well, we programme well, we improve the product market fit, we improve engagement, we grow members, we grow revenue," Netflix co-CEO Ted Sarandos said in a post-earnings video interview.
Read: Netflix bets on cricket, documentaries to attract users in India amid rising competition
India has emerged as an increasingly important market for Netflix's future growth in recent years, besides serving as a key content hub for the platform. This comes amid rising appetite for digital content among consumers in the world's second largest Internet market.
However, India's price-sensitive nature has made it particularly hard for the streaming service to gain a significant foothold in the market where most of its rivals are offering their services for lower prices. Netflix had cut its prices by 20-60 percent in India in December 2021.
The streaming giant is also set to face stiff competition in the country, following Reliance Industries’ joint venture with Disney, which combines the businesses of Viacom18 and Star India. The deal includes JioCinema and Disney+ Hotstar, two of India's top streaming services.
In April 2023, Sarandos had said that India is a "big prize" because it has an enormous population of entertainment-loving people and they will "ultimately do great" in the country.
In February, Netflix unveiled its 2024 content slate for the India market to strengthen its offerings. The slate comprised 22 titles, including 8 films and 14 series.
Among the new titles include a docu-series that chronicles the cricket rivalry between India and Pakistan on-and off-the-field, called The Greatest Rivalry - India vs Pakistan; a limited series on the 1999 Kandahar hijack called IC 814: The Kandahar Hijack; and a documentary on the life of the hip hop artist and rapper Yo Yo Honey Singh called Yo Yo Honey Singh: Famous.
Netflix will also offer new seasons of several of its popular series, such as Mismatched Season 3, Yeh Kaali Kaali Ankhein Season 2 and Fabulous Lives vs Bollywood Wives. The third season of Kota Factory debuted on the platform last month.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
