Streaming platform Netflix, which is fighting heavy competition in Asia, especially in India, is said to have been helped by its tie up with Reliance Jio to gain ground in these parts, even as its growth is slowing down in other parts of the world.
In India, Netflix is expected to end the year with 4.6 million paid subscribers, according to a research report by Media Partners Asia, an independent provider of research, advisory and consulting services in the Asia Pacific.
Netflix India's FY-20 revenue rose two-fold, mostly driven by Indian content and a low-cost mobile-only plan. Netflix India has reported a revenue of Rs 923.7 crore and a net profit of Rs 8.9 crore.
Overall, in Asia-Pacific region, Netflix will end the year with $2.4 billion of revenue, which will represent a 10% share of the company's total revenue.
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Netflix hopes to do better in 4th quarter
Online content consumption in India has seen massive growth with data plans becoming more affordable. Data rates in India are among the cheapest globally.
Netflix, had earlier said in a shareholders statement, said the partnership with Reliance Jio, helped it to deliver content tailored to local audiences.
Netflix had also stated that it was a victim of its own success following a “record first half” and “the pull-forward effect” following subscription increases linked to Covid-19 pandemic.
The MPA report shows net subscriber growth in the third quarter, as expected, slowing to 1 million, following work-from-home highs in the first six months of the year.
But the research forecasts a rebound in the fourth quarter.
India a pillar for Netflix
In September this year, Netflix India partnered with Jio to offer a free mobile-only subscription to post-paid subscribers, at plans starting Rs 399 per month and above.
The subscribers are offered an option to upgrade to traditional plans. Netflix is also hard-bundled with Jio's fixed broadband service.
Netflix launched a bundle for Jio’s mobile and fibre broadband packages, as a part of a “broad partnership” with the operator and a “big investment in local originals”, along with providing a Hindi version of its UI.
Netflix CEO Reed Hastings had last year announced that Netflix would invest Rs 3,000 crore on Indian content. The company has followed it up with the launch of mobile-only plans in the country.
"India is the only country where we are launching a mobile-only plan. The country is a pillar for us. With the huge population rise, rising middle class and all the entertainment that we can create out of India, it is an important play in the books of Netflix," the company had said.