News Update

Netflix Co-CEO Plans To Adjust Prices And Deliver India-Friendly Content For Revenue And Engagement Growth

• ByStartupStory     |    April 19, 2023

Netflix remains optimistic about its growth potential in India, despite facing some challenges in the market. Co-CEO Ted Sarandos has stated that the company is committed to adjusting its pricing and content offerings to better suit the needs of the Indian market, with the aim of driving revenue growth and customer engagement. According to Sarandos, the key to success in India is to provide content that resonates with local audiences and to offer pricing that is more suited to the market. These efforts are expected to help Netflix tap into the vast growth potential of India’s booming OTT market.

During his visit to India in February, Netflix co-CEO Ted Sarandos referred to India as the “fastest-growing market” and suggested that better pricing could help drive the company’s revenue growth in the region. Since then, Netflix has seen steady improvement in user engagement in both films and series, with a 30% growth in customer engagement and 24% revenue growth year-on-year after launching a low-priced subscription plan in India in 2021. The company attributes this success to a combination of lower prices and an improved content slate. Building on this, Netflix has expanded its reduced pricing strategy to 116 additional countries in Q1. The company remains optimistic about its potential for growth in India and other emerging markets, which are expected to play a key role in driving revenue growth in the future.

According to Netflix co-CEO, Ted Sarandos, Indian local content is gaining popularity worldwide. He cited Rana Naidu as one of the shows that Indians are loving across the country. Sarandos believes that success in India depends on getting the pricing and payment methods right. India is a big market due to its large population of entertainment enthusiasts, and Netflix needs to have products that appeal to them. As the content opportunity continues to grow and the company’s ability to access the market and audiences continues to improve, Netflix can perform well in India, he added. Despite still investing in the market, the co-CEO is optimistic about the company’s future prospects in India.

These statements were made at a crucial juncture when Netflix was reportedly considering a shift in its content strategy to focus more on big-budget films in order to acquire new subscribers and retain existing ones. The company had to cancel several of its original shows that were under development or filming, as it believed that these investments would not pay off. This was coupled with a 35%-40% decline in the Indian coDespite facing competition from domestic and international players in the Indian OTT space, Netflix has seen success with its film content in the country, including RRR and Gangubai, which garnered over 73 million hours and 50 million hours of watch time within their first few weeks on the platform, respectively. 

However, the streaming giant faces competition from players such as Amazon Prime Video, Disney+Hotstar, Zee5, and MX Player, as well as new entrant JioCinema, which is reportedly planning to release 100 movies and TV shows on its platform in the next 18-24 months. Additionally, according to a report by RBSA Advisors, India’s video OTT market is expected to grow to $12.5 billion by 2030 due to better networks, digital connectivity, and smartphone access. Despite this growth potential, Netflix still has room for improvement in regional language content in India.ntent budget.

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