IBEF: November 03, 2020
According to a recent report by Media Partners Asia, (an independent provider of research, advisory and consultancy services across the media, telecom, sports and entertainment sectors in the Asia Pacific region), the alliance with Reliance Jio is expected to help American streaming service Netflix close the year with 4.6 million paying subscribers in India.
The report added that over-the-top (OTT) video streaming platform Netflix can notch up a US$ 5 average revenue per user or ARPU.
Overall, by the end of 2020, the service is expected to command over 25 million subscribers in the Asia Pacific region. India could account for up to 9% of the worldwide revenue share of the platform in Q3 2020.
In September, Netflix India collaborated with Jio to give post-paid subscribers a free mobile-only subscription with plans starting at US$ 5.3 per month (Rs. 399/ US$ 5.36) and above. A choice to switch to conventional plans is given to subscribers. With Jio's fixed broadband service, Netflix is also hard bundled with free access for users who opt for data plans starting at US$ 20 per month (Rs. 1,499/US$ 20.13) and above. In July 2020, Netflix began testing a 'mobile plus' plan in India for US$ 4.7 per month (Rs. 349/US$ 4.69), enabling single HD streaming on mobile phones, tablets, and laptops.
The mobile-specific plans were coupled with the launch of a Hindi user interface and local Indian offerings such as Jamtara-Sabka Number Ayega and She, original films such as Guilty, Choked and Bulbul that were major hits in the lockdown, along with international titles such as Extraction, Old Guard, Money Heist, Never Have I Ever and a host of content from Korea, Spain and Japan.
Unlike other nations, this style of premium storytelling has not really been seen in India and is a fresh and nascent market. "For Indian and global viewers, we want to create Indian stories," Ms. Monika Shergill, vice president, content, told Mint in an earlier interview with Netflix India.
Netflix India posted revenues of Rs. 923.7 crore (US$ 124.04 million) and net profit of Rs. 8.9 crore (US$ 1.20 million) for the fiscal year 2019–20, according to its filing with the Registrar of Companies first reported by The Economic Times.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.