Netflix has reported a 24 percent increase in revenue in FY23 at Rs. 2214 crore. The surge is largely due to cheaper subscription plans, after the company slashed prices in 2021 and an expanded slate of titles.
The online video streaming platform’s net profit too increased 75 percent from Rs. 20 crore in FY22 to Rs. 35 crore in FY23, as indicated by the regulatory filings with the Registrar of Companies (RoC).
Los Gatos Production Services India LLP, the entity through which Netflix reports its content investments in India, indicated a gross revenue of Rs. 3191 crore in FY23. 99 percent of this revenue came from the export of services.
In India, Netflix’s subscription plans start at Rs. 149 (mobile only) and go up to Rs. 749. One of the other reasons behind the revenue growth is Netflix’s effort in reducing password sharing by users in multiple countries which includes India.
Marketing and distribution costs, among others of the platform increased 24 percent to Rs. 2062 crore.
While the revenue increase in FY23 was significant when compared to the 16 percent increase in FY22, it remained substantially lesser than the 66 percent pandemic-fuelled increase in FY21.
According to a report by Bernstein, Netflix currently has around 6.5 million subscribers in India. This gives the platform 4 percent share in the Indian market. Disney+ Hotstar dominates the market with 33 percent shares and around 50 million subscribers, and is currently in talks of a potential merger of its India business with Reliance Industries. Amazon Prime has 12 percent market share with around 20 million subscribers.