Netflix’s Indian entity has shown a 2X growth in its operating revenue, as it has posted Rs 923.7 crore topline in FY20, according to the regulatory filings.
Strong Base In Asian Market
So far, Netflix has been facing saturation in the US market for some time.
But, now the company has found a strong footing in the Asian market, especially in India.
With the latest partnership with Reliance Jio, it is expected to help the over-the-top (OTT) video streaming platform.
To the extent where they can close the year with 4.6 million paid subscribers in India, according to the recent analysis by Media Partners Asia.
Here Media Partners Asia is an independent provider of research, advisory and consulting services in the Asia Pacific.
If we talk about the segment, Netflix has generated 93% of the operating revenue worth Rs 858.6 crore by offering entertainment services in India.
The remaining 7% is earned through exports.
Netflix Jio Partnership
Netflix India partnered with Jio In September.
They plan to offer a free mobile-only subscription to post-paid subscribers for plans starting at $5.3 per month ( ?399).
Under this scheme, the subscribers were offered the option to upgrade to traditional plans.
Apart from this, Netflix is also hard-bundled with Jio’s fixed broadband service which provides free access to subscribers opting for data plans starting at $20(Rs 1499) per month.
During July 2020, the streaming platform started testing a $4.7 per month ( ?349) ‘mobile plus’ plan in India, this allowed single HD streaming on mobile, tablets and laptops.
Basically, the surge in operating revenue and profit in FY20 mainly driven by the growth of the mobile-only version of Netflix.
As part of the move, Netflix had launched Rs 199 ($2.80) per month subscription exclusively for the Indian market in July last year.
Since last year, Netflix has been focusing on producing India-centric content and it seems to be very much in favor of the company.
This revenue jump has given a substantial boost to Netflix India’s reserve and surplus account which swelled 2.7X to Rs 14.3 crore at the end of the fiscal ended in March 2020.
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