Streaming service Netflix’s India arm – Netflix Entertainment Services India LLP – saw a 24% year-on-year growth in its FY23 revenue to Rs 2,214 crore. Net profit grew 75% compared to last year to Rs 35 crore, regulatory filings with the Registrar of Companies (RoC) show.
The growth in topline and bottomline comes as Netflix cut the price of its subscription plans in December 2021, leading to better customer engagement and subscriber numbers in calendar year 2022. Calendar year 2023 saw Netflix crack down on password sharing across markets, including India. It has also pushed its mobile-only plan of Rs 149 aggressively in India to drive up subscriber numbers, sector experts said.
Netflix has two entities in India – Netflix Entertainment Services India LLP and Los Gatos Production Services India LLP. Los Gatos is responsible for Netflix’s content investments in India. The firm’s inventories, including licensed content as well as titles that are under development, grew 25% year-on-year in FY23 to touch Rs 2,269 crore in terms of value.
In November 2023, Los Gatos received Rs 1,300 crore in capital contribution from the parent entity in the US, taking the total investment in the firm to Rs 5,700 crore since its inception in 2019.
During FY23, Netflix Entertainment Services spent Rs 125 crore on personnel services, up 30% as compared to the previous year. Meanwhile its other expenses, comprising marketing and distribution costs, increased 24% year-to-year to Rs 2,062 crore.
Revenue growth in FY23, while better than the 16% growth seen in FY22, is lower than the 66% growth in FY21, when digital services were seeing a pandemic-driven consumption boom.
In many of its global markets, Netflix has introduced an ad-supported subscription plan that is helping it drive growth. In the September 2023 quarter, the company saw a 70% jump in subscription of its ad-supported plans globally. However, the company is yet to introduce that in India.
Growth Story
The growth in topline and bottomline comes as Netflix cut its subscription price
This led to better customer engagement and subscriber numbers in 2022
Netflix aggressively pushed its mobile-only plan of Rs 149 in India to drive up subscriber numbers, sector experts said
Netflix India’s 24% revenue growth in FY23, while better than 16% in FY22, was lower than 66% in FY21