Netflix’s India arm has recorded a net turnover of Rs 2,214 crore for the financial year 2022-2023 (FY23), marking a 24.1% year-on-year (YoY) growth, according to the company’s latest filing with the Registrar of Companies sourced from PrivateCircle Research.
The growth is attributed to an expanded subscriber base in India, driven by a wider content offering. Additionally, price reductions have played a significant role in enhancing user engagement, thereby supporting the growth of subscribers. The company’s total income increased by 24.4% to Rs 2,286.3 crore in FY23 from Rs 1,837 crore in FY22. Netflix’s net profit surged by 75% YoY to Rs 35.3 crore in FY23 from Rs 20.1 crore in FY22.
During FY23, Netflix’s personnel expenses rose by 29.2% to Rs 124.6 crore from Rs 96.4 crore in FY22. Meanwhile, other expenses, including marketing costs, increased by 24% to Rs 2,062 crore in FY23 from Rs 1,667 crore in FY22. The company’s total expenses witnessed a 23.9% increase to Rs 2,232.5 crore in FY23 from Rs 1,802 crore in FY22.
India has emerged as one of the fastest-growing markets for Netflix in recent years. In April 2023, Netflix co-CEO Ted Sarandos highlighted India as a significant market due to its large population of entertainment enthusiasts and the growing demand for digital content.
Despite being among the more expensive video streaming services in India, Netflix has implemented various strategies to attract customers. These include introducing a mobile-only plan and experimenting with pricing. In December 2021, Netflix reduced its prices in India by 20-60%, a move that, along with an improved content slate, contributed to a nearly 30% YoY increase in user engagement, as stated by Sarandos in April 2023.
However, Netflix has also implemented measures to curb account sharing in India, aligning with its global efforts to drive revenue growth. Unlike in many mature markets, Netflix does not offer the ‘extra member’ option in India and certain other regions, citing recent price cuts and relatively low market penetration.
In India, Netflix faces competition from both domestic and international streaming platforms, including Disney+ Hotstar, Amazon Prime Video, Zee5, Sony LIV, and JioCinema. A report by analysts at AllianceBernstein in October 2023 estimated Netflix’s subscriber base in India to be around 6.5 million.
