India leads in Netflix paid subscriber additions, ranks third in revenue growth for Q2

For Netflix Inc., India became the second-largest martket in terms of paid net subscriber additions and third-largest by revenue percentage growth in the June quarter, said the American streaming platform.

The streaming platform’s success in the country was driven by titles like Heeramandi: The Diamond Bazaar, which clocked 15 million views, Amar Singh Chamkila with 8.3 million views and licensed films such as Laapataa Ladies and Shaitaan.  

While the company doesn’t disclose country-specific numbers, it added 2.8 million new subscribers in the Asia Pacific in its second quarter. 

Globally, the streaming giant added 8.05 million new subscribers, ending the April-to-June period with a total of 277.7 million subscribers.

Netflix follows a January to December fiscal year.

“India’s growth is a story that we see playing out very similarly around the world. The product market fit is what drives our ability to attract members, retain them and monetize them as well. So, I feel like what’s going on in the quarter has been this ongoing build,” Ted Sarandos, co-chief executive, president and director, Netflix, said during an earnings call. 

He referred to Sanjay Leela Bhansali’s Heeramandi: The Diamond Bazaar as an “incredibly ambitious series” and the platform’s biggest drama series to date in India. 

“On top of that, our original films and our licensed films immediately following theatrical, continue to thrill our members. So, we pick them well, we program well. We improve the product-market fit. We improve engagement, we grow members, we grow our revenue. It’s the same formula, I think, everywhere we go. And there’s certainly plenty of room to grow in India as long as we keep thrilling our audiences there,” he added.

To be sure, there has been a visible change in Netflix’s India approach over the last couple of years, according to media experts, with the company making a conscious effort to get its act together. 

For starters, it slashed prices by 18 to 60% in December 2021, in an attempt to reach more people. Netflix’s mobile-only plan, earlier priced at  ₹199 per month, now costs only ₹149. The basic plan, which allows access to all content on any one device, is priced at  ₹199 versus  ₹499 earlier. It has also tied up with mobile operators that offer their subscribers bundled packages.

In addition, the platform has made a conscious attempt to bring out content that appeals to a wider audience. It has released a bunch of critically acclaimed titles in quick succession over the last year, including Trial by Fire, Scoop, Kohrra, Kathal, Guns & Gulaabs and The Romantics. 

The latest slate, announced at the end of February, follows a similar template. This includes The Great Indian Kapil Show, a comedy special by popular actor Kapil Sharma and Heeramandi: The Diamond Bazaar.

For the April-June quarter, the streaming giant reported a net profit of $2.1 billion and a revenue of $9.6 billion.