HomeNewsTechnologyNetflix India's net profit jumps 75% in FY23; revenue up 24% on subscriber growth
Netflix India's total income grew 24.4 percent YOY to Rs 2,286.3 crore in FY23.
January 11, 2024 / 06:52 IST
India has emerged as one of the fastest growing markets for the video streaming service Netflix in the past couple of years
Video streaming platform Netflix's India arm has posted aÂnet turnoverÂof Rs 2,214 crore for the financial year 2022-2023 (FY23), registering a 24.1 percent year-on-year (YoY) growth, as per the company's latest filing with the Registrar of Companies sourced from PrivateCircleÂResearch.
The growth was likely led by an increased subscriber base in the country, due to an expanded content slate. Moreover, price reductions also helped the company boost engagement among users in India, thus supporting subscriber growth.
The company's total income grew by 24.4 percent to Rs 2,286.3 crore in FY23 from Rs 1,837 crore in FY22. Net profit jumped by 75 percent YoY to Rs 35.3 crore in FY23 from Rs 20.1 crore in FY22.
During the financial year, Netflix's personnel expenses rose 29.2 percent to Rs 124.6 crore in FY23 from Rs 96.4 crore in FY22. Other expenses, which include marketing costs, increased by 24 percent to Rs 2,062 crore in FY23 from Rs 1,667 crore in FY22. The company's total expenses saw a 23.9 percent increase to Rs 2,232.5 crore in FY23 from Rs 1,802 crore in FY22.
Apart from being a key content hub, India has emerged as one of the fastest-growing markets for the video streaming service in the past couple of years. In April 2023, Netflix co-CEO Ted Sarandos said that India is a "big prize" because it has an enormous population of entertainment-loving people and the appetite for digital content is rising in the country.
While Netflix remains among the costliest video streaming services in India, the service has taken several steps to attract customers in India. This includes introducing a mobile-only plan and piloting various pricing experiments in the country.
Netflix also reduced its service prices in India by 20-60 percent in December 2021, even as it hiked prices in other markets such as the United StatesÂand the United Kingdom. The price reductions, along with an improved content slate, have helpedÂboost engagement in India by nearly 30 percent YoY, Sarandos said in April 2023.
That said, the streaming service has also cracked down on account sharing in India, as part of a broader global effort to boost its revenue growth. Netflix is however not offering the 'extra member' option in India and certain other markets, unlike many other mature markets, citing recent price cuts and relatively low penetration.
Netflix competes in India with a slew of domestic and international rivals, including Disney+ Hotstar, Amazon Prime Video, Zee5, Sony LIV, and JioCinema. The service had around 6.5 million subscribers in India, as per a report by analysts at AllianceBernstein in October 2023.
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first published: Jan 11, 2024 06:52 am
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FAQs
It is also pertinent to note that Netflix's India arm, Netflix Entertainment Services India LLP, saw its net profit surge 75% to INR 35 Cr in the financial year 2022-23 (FY23) from INR 20.13 Cr in FY22. Operating revenue grew 24% to INR 2,214 Cr in FY23 from INR 1,784 Cr in FY22.
What is the revenue of Netflix India in FY23? ›
According to a report by The Economic Times citing Media Partners Asia estimate, Netflix had 12 million paid subscribers in India. According to regulatory filings, Netflix Entertainment Services India saw a 24 per cent revenue increase, reaching Rs 2,214 crore in FY23, with net profit rising 75 per cent to Rs 35 crore.
What is the growth rate of Netflix in India? ›
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.
What is the net profit percentage of Netflix? ›
Netflix net profit margin for the quarter ending June 30, 2024 was 19.54%. Netflix average net profit margin for 2023 was 14.06%, a 10.9% increase from 2022. Netflix average net profit margin for 2022 was. Netflix average net profit margin for 2021 was 16.26%, a 44.15% decline from 2020.
Is Netflix revenue increasing? ›
Netflix guided to third quarter revenue of $9.73 billion, a miss compared with consensus estimates of $9.83 billion. The company did increase its full-year 2024 revenue growth projection to 14%-15%, up from the prior 13%-15%.
Is Netflix in India successful? ›
Netflix's success in India was driven by titles like Heeramandi: The Diamond Bazaar, Amar Singh Chamkila and licensed films such as Laapataa Ladies and Shaitaan. Overall in the Asia Pacific region, Netflix added 1.53 million new subscribers in Q2 FY24, versus 1.22 million in the same period a year ago.
How much is a Netflix subscription in India? ›
Netflix India plans comparison
| NETFLIX PLANS INDIA | NO. OF SCREENS/ RESOLUTION | MONTHLY SUBSCRIPTION COST |
|---|
| Mobile | 1 screen/ SD content | Rs 149 |
| Basic | 1 screen/ SD content | Rs 199 |
| Standard | 2 screens/ FHD content | Rs 499 |
| Premium | 4 screens/ UHD content | Rs 649 |
Jul 12, 2024
Netflix's target market is young, tech-savvy users and anyone with digital connectivity. The audience of Netflix is from diverse age groups and demographics. However, most of the audience are teenagers, college-goers, entrepreneurs, working professionals, etc.
Who owns Netflix India? ›
Netflix India is an Indian subsidiary of the American global internet streaming on-demand media provider Netflix that distributes a number of content called "originals" (films, series, miniseries, etc.)
What age group uses Netflix the most in India? ›
In March 2022, among its unique visitors, Indian males between 15 and 24 years old were the largest demographic for the video-on-demand company.
By owning the rights to its original content, Netflix can leverage revenue from licensing agreements with other platforms and broadcasters. This further monetizes its content library and increases overall profitability.
Is Netflix losing customers in 2024? ›
Quarterly Netflix subscribers count worldwide 2013-2024
Netflix had around 277.65 million paid subscribers worldwide as of the second quarter of 2024. This marked an increase of over eight million subscribers compared with the previous quarter.
What is Netflix's net profit in 2024? ›
After a challenging year for the U.S. TV and streaming industry due to the strikes in Hollywood, market leader Netflix reported a net income of over 2.1 billion U.S. dollars in the second quarter of 2024, up from a year earlier.
Is Netflix in debt? ›
Overall, Netflix had $12.18 billion in long-term debt as of the end of June, down from $14.14 billion at the end of 2023, per its most recent earnings report. On Tuesday, Netflix detailed the terms of the new debt in a pricing term sheet in a filing with the SEC.
Where does Netflix get most of its revenue? ›
Netflix's top revenue streams primarily come from subscription fees, content licensing, and original content production. The largest portion of its revenue is generated through subscription fees paid by millions of subscribers worldwide. If you wonder how many subscribers does Netflix have?
Who is Netflix's competitor? ›
Competitors like Disney+, HBO Max, and Amazon Prime Video are vying for viewers' attention. Netflix, however, remains a dominant force in the industry, constantly evolving and adapting to stay ahead of the curve.
How much does Netflix pay for a movie in India? ›
According to a report by OTT Play, Netflix has acquired the digital rights of Kushi at a hefty cost of Rs 30 crores. Reportedly, this marks the only Vijay Deverakonda film which has been sold at such an expensive amount.
How many employees does Netflix have in India? ›
Netflix employs 201 to 500 employees in India.
