DBT Bureau
Bengaluru, 4 November 2024
Streaming giant Netflix’s India arm, Netflix Entertainment Services India LLP, posted a net profit of Rs 52.4 crore in FY24, an increase of 49% over the previous fiscal year. In FY23, Netflix’s India unit posted a net profit of Rs 35 crore.
The improvement in profit is largely attributed to increased subscription base coupled with a focus on the creation of local content.
Net turnover of the OTT platform rose by 28.5% to Rs 2,845.7 crore in FY24 from Rs 2,214.1 crore reported in FY23. The company’s total income grew by 30% to Rs 2,895.6 crore in FY24 from Rs 2,228 crore in FY23.
During the financial year, Netflix cut its personnel expenses by 10.6% to Rs 105.98 crore, from Rs 118.5 crore in FY23. Other expenses, which include marketing costs, however increased by 32.3% to Rs 2,688.4 crore for FY24, from Rs 2,032.7 crore incurred in FY23.
Netflix subscription rates in India are the highest as compared to its competitors in the market. However, the company has started experimenting with many price slabs coupled with strong local content to attract viewers.
It has also entered into partnerships with India’s major telecom operators Airtel, Reliance Jio, and Vodafone to bundle its services with select prepaid and postpaid plans.
The streaming major, however, is facing tough competition in the country following Reliance Industries’ joint venture with Disney, which combines the businesses of Viacom18 and Star India.
