Due to a growing number of subscribers and a more robust selection of local content, Netflix’s India division saw a notable increase in net profit and revenue for the fiscal year that ended on March 31, 2024 (FY24). According to the company’s most recent filing with the Registrar of Companies, which business intelligence platform Tofler released, the video streaming platform recorded a 49% increase in its earnings after tax to INR 52.4 crore for the year, up from INR 35.3 crore in FY23.
From INR 2,214.1 crore in FY23 to INR 2,845.7 crore in FY24, net turnover increased by 28.5%. From INR 2,228 crore in FY23 to INR 2,895.6 crore in FY24, the company’s total revenue increased by 30%.
Netflix reduced their human costs from INR 118.5 crore in FY23 to INR 105.98 crore during the fiscal year, a 10.6% decrease. However, other expenses, which include marketing costs, went up 32.3 percent from INR 2,032.7 crore in FY23 to INR 2,688.4 crore for the year. As a result, the service’s overall costs increased from INR 2,174.2 crore in FY23 to INR 2,810.8 crore for the year, a 29% increase.
Netflix and Indian Market
In recent years, India has emerged as a crucial content hub for Netflix and a country that will be increasingly significant for the company’s future growth. This occurs as customers in the second-largest internet market in the world show an increasing desire for digital material.
Ted Sarandos, the co-CEO of Netflix, stated last year that India is a “big prize” due to its large population of entertainment-loving individuals who would “ultimately do great” in the nation.
Although Netflix is now one of the most expensive video streaming services available in India, the company has made a number of efforts in recent years to draw users to its platform. This entails launching a mobile-only service and testing out different price schemes across the nation.
India is the Second Largest Market for Paid Subscribers
Without providing any specifics, Netflix said in July that India was its third-largest revenue growth percentage for the June-end quarter and its second-largest country for premium subscriber additions. According to a letter sent to shareholders at the time, the growth was fuelled by huge, successful original titles like Imtiaz Ali’s Amar Singh Chamkila and Sanjay Leela Bansali’s Heeramandi: The Diamond Bazaar throughout the quarter.
Although Netflix does not disclose its subscriber count by nation, industry estimates place the number of paid subscribers in India at about 12 million. In the Asia-Pacific area, which includes India, Netflix announced 52.6 million members as of the September-ended quarter (Q3 2024).
The business declared in April that starting in Q1 2025, it would no longer publish quarterly paid membership additions. This choice was made because, according to the company, each additional paid membership has a distinct commercial impact because it currently offers many pricing tiers across different countries. Netflix now views engagement as the strongest indicator of member satisfaction and wants to concentrate on revenue and operating margin as its main financial measures.
However, the joint venture between Reliance Industries and Disney, which merges the operations of Viacom18 and Star India, is expected to put the streaming giant up against fierce competition in the nation.
You would be living under a rock if you don’t know what Netflix is. It is the world’s most popular subscription based video streaming service. Founded in 1977 and was originally a DVD rental service. In 2007 it began streaming cinema online (OTT Service) and became the Netflix that we know today.
Streaming services such as Netflix have changed the way we consume media in the world today. With the emergence of “binge watching” we now have access to and can consume more entertainment than ever before. But how are these new opportunities affecting our culture as a whole? As of July 2021, Netflix has 209 million subscribers. That is a huge number and It grows around ten percent every year. With this number of viewers watching everything that Netflix produces, there are some “after effects” too. Effects that continue even when your favourite movie or series come to end. So what are these Effects and how are they relevant to us and the Environment/Economy around?
We are talking about the Netflix Effect. This term can be used to describe several events that are the consequences of the culture that borns out of Netflix’s shows and movies. For instance Actors that became a sensation overnight or certain products after being used in a film or show getting huge demand from everywhere. With a huge audience waiting eagerly for the next season of shows or sequels, this effect is obvious and inevitable in all senses. To get more clear let us take an example.
The Queen’s Gambit is a TV series, released on Netflix in October last year. The plot was about an orphan chess prodigy who dreams of becoming a chess grandmaster someday. The show soon became one of the most popular shows on Netflix. Before its release, if you’d asked the general public whether a show about chess could bring in millions of viewers and break Netflix records, chances are most wouldn’t have believed you. YES, A record-setting 62 million households chose to watch The Queen’s Gambit in its first 28 day.
With this rising viewership, the show created a cult, a culture that interested a lot of people. The after effects of this huge Fandom were many. To count a few, the show soared sales of chess boards, people all of a sudden began learning how to play chess, The original novel became a bestseller and Chess-dot-com (Online Chess platform) saw huge sign ups, Chess apps downloads went up by many folds. This is what happens when a show becomes immensely popular, People start copying and imitating their favourite characters in the show.
Google Trends showing splurge in “Chess” term in UK
Squid Games in Real
The most recent Netflix blockbuster “Squid Games” has become a pop culture phenomenon. Released in September, It is a Korean Horror-Survival series. Striking a chord with the audience, The show has produced massive ripple effects in trends. From Squid games themed fashion lines to viral challenges on Tik-Tok.
Squid Game Costume
All of a sudden everyone is mentioning a reference from the show. People are cosplaying the characters, Learning korean, Not to mention Dalgona candy sales are at an all time high, and oh my gosh !! White sneakers are generating 7800 percent more sales than before. Vans(Shoe store) is having a good boom after this. Duolingo’s Korean learners increased by around 40% and everyone just wants to jump into the fashion.
A character from the show “HoYeon Jung” became an overnight sensation when her IG followers jumped to the sky, was roped in by Louis Vuitton and was made the face of the luxury brand.
HoYeon Jung Instagram
Squid Game is still producing viral benefits for brands.
The show was viewed by over 142M households worldwide and generated an estimated $900M in value for Netflix. (The series cost Netflix only a little over $21M.)
As google is synonymous and an official “Verb” for searching, Netflixing has become a synonym to “binge watching”. Ask for binge recommendations and most and all you get is Netflix produced stuff. It has changed how we consume media for entertainment. Online streaming is not killing cinephilia, but rather it is changing the way we view movies and interact with that particular medium. I would also say that cinephilia is not dying and, in some ways, I would say it is stronger than ever.
The reason why I have named this para as ‘Imitation Game’ is that people imitate what they find superior or heroic or just greater-than-life. There is a quote that goes here very smoothly
– “Whoever controls the media, controls the mind” – Jim Morrison.
When people watch their favourite characters doing something, they seek to imitate them. Like the prodigy that plays chess in “Queen’s Gambit”, Made people like chess, play it more and speak about it more. “Squid games” made people hop into themed jumpsuits and play challenges and imitate the show. The behaviour of liking and copying people’s favourite, can or maybe has already become a business marketing technique. How far it can go and how dynamic it can be, we will witness.
The Future of Advertising
The instances of Netflix’s rocketing sales of on screen products proves the point that it can be a marvellous advertising powerhouse. Brands can take note of these effects and market their products as a story, or woven as a story, a series, show or any piece of cinema to lure cinephiles.
Netflix Is Ad Free, but It Isn’t Brand Free – A Tribune Article
In another recent cross-promotion, Netflix charged the clothing company Diesel a license fee to make outfits inspired by “La Casa de Papel,” one of Netflix’s most popular shows. Online ads from Diesel hammered home the connection by showing the Netflix name, mentioning “La Casa de Papel” and featuring characters in the distinctive red jumpsuits worn by the show’s protagonists.
Netflix Effect on Diesel Clothing Company ad
Conclusion
Netflix doesn’t run ads on its platform but has somehow magically has become a coveted marketing platform in the world. The top streaming service provider restrains commercials but is trying to figure out a way on how it can work with brands to direct the crowd. Netflix is highly cautious about his brand image too and even continues to refute the idea of introducing an advertising model similar to the majority of other streaming services have adopted.
Nevertheless as per studies and reports and as per viewers’ own discretion we can discuss and establish that sooner or later Netflix can approach brand advertising and product placement in maybe a different manner than the rest. This expansion in this scope is going to give a strong back support to the company, providing them with more options and more stability. If this happens then the world of advertising will surely see a splurge. The advertising will be more specific and widespread, the characters more colourful and the Fandom more wholesome. In the meantime, marketers should pay attention to what’s taking the streaming world by storm – it may help them to boost sales.
FAQs
How many customers does Netflix have?
Netflix has about 209 million paying customers globally.
Which country uses Netflix the most?
Netflix is most watched in South America.
How much money does Netflix make?
Netflix generated total revenue of over 7.3 billion U.S. dollars in the second quarter of 2021.
Which Netflix series has the most views?
Netflix top 5 series by total view in 1st month of release are:
‘Netflix Binge’ is set to acquire a whole new meaning as the company prepares to offer free streaming for everyone starting from December 5 in India. However, good things do not last much longer and the StreamFest will end at 11:59 PM on December 6th, tempting viewers to cancel all plans for the upcoming weekend.
As OTT platforms try to bring in fresh content and a blend of variety to attract more users, Netflix is going all out this time with a StreamFest, unlocking all award-winning movies, series, and documentaries.
According to Netflix, “Anyone in India” can watch any movie, series, or documentary for free during this fest.
Neflix StreamFest
“Any individual who signs in during StreamFest gets one stream in standard definition along these lines. Nobody else can utilize the equivalent login data to stream… Also, to ensure every individual who comes in gets the best insight, we should restrict StreamFest watchers’ quantity,” Netflix India Vice President (Content) Monika Shergill said in a blog.
“Along these lines, during StreamFest, in the event that you see a message saying “StreamFest is at the limit,” don’t stress. We’ll tell you when you can begin streaming,” she added.
But there is a catch. These users might come across the message “StreamFest is at capacity” which can possibly limit the screen time. Netflix will however notify once the coast is clear and one can resume streaming again.
This move by Netflix is expected to lure new viewers to the stage that contends with players like Amazon Prime Video, Disney+ Hotstar, and Zee5 in the flourishing OTT (over the top) market in India.
How to join the Streamfest aka Netflix-binging fest:
1) Visit Netflix.com/StreamFest (or download the Android app), sign up with your email ID or name or phone number. You can set a reminder that will notify you once the StreamFest is live.
2) No credit or debit card or payment is needed. PS: Netflix says it only requires user attention for the weekend.
3) Anyone who signs in during StreamFest gets one stream in standard definition — so, no one else can use the same login information to stream.
4) Users can access and enjoy every feature that current members use including My List, User Profile, Top 10 list, Smart Downloads, and so on.
5) The fest will end after 48 hours and users can continue watching by subscribing to the required package.
OTT platform Netflix has over 195.15 million paid endorsers worldwide as of the second from the last quarter of 2020. The organization doesn’t share nation explicit client numbers.
Harshit Verma
