Netflix India Expects Double-digit Increase in Sales and Profit for FY24

Netflix's Indian business recorded a net profit of Rs 52 crore for the fiscal year ending March 31, a 49% increase from Rs 35 crore the previous year.

Netflix Entertainment Services India's gross turnover increased 29% to Rs 2,845 crore from Rs 2,214 crore in FY23, driven by a growing user base, according to financial data supplied by business intelligence platform Tofler.

According to Media Partners Asia, Netflix is India's largest pure-play video-on-demand service, with an estimated 12 million customers. Recent subscriber growth has been fueled by an increase in content offerings, which has been accompanied by the introduction of mobile-specific subscriptions and a crack down on password sharing.

Expenses increased 29% to Rs 2,810 crore, owing mostly to a 32% increase in other expenses, which reached Rs 2,688 crore. Netflix managed to reduce human expenses by 11% to Rs 105 crore. Cash and cash equivalents rose 110% to Rs 861 crore.

Los Gatos Production Services India, which supports Netflix's content-related activities, reported a 122% growth in net profit to Rs 91 crore, while gross turnover increased by 17% to Rs 3,744 crore, primarily due to export services.

Los Gatos Production's total expenditure grew by 16% to Rs 3,644 crore due to increased content production.

Netflix announced its 2024 programming plan in February, which includes 14 programs and eight features.

Purchases made for resale totaled Rs 3,431 crore, up 17% from Rs 2,923 crore. Personnel expenses remained constant at Rs 36 crore, while administrative costs declined 10% to Rs 159 crore. Partner contributions to Los Gatos Production surged 30% to Rs 5,700 crore, while cash and cash equivalents increased by 14% to Rs 1,046 crore.

On its July 18 second-quarter earnings call, California-based Netflix Inc recognized India as the world's second-largest market for paid net subscriber additions in the June quarter and third in revenue percentage growth. The content lineup, led by the online series 'Heeramandi: The Diamond Bazaar', aided this expansion.

During the call, Netflix co-CEO Ted Sarandos stated that the company's expansion in India mirrors its success in other markets, where content-market fit fueled member acquisition, retention, and monetization.

Sarandos noted that Heeramandi, helmed by Sanjay Leela Bhansali, was Netflix India's most popular drama series, with 15 million viewers. The portal also revealed that Amar Singh Chamkila received 8.3 million views, while licensed films such as Laapataa Ladies and Shaitaan also helped to boost subscriber numbers.

"Our original films and licensed films, including those released in the pay-TV window following theatrical releases, continue to thrill our members," Sarandos said in July.

During the third-quarter results call on October 17, Co-CEO Greg Peters emphasized that markets such as India illustrated Netflix's decade-long engagement in local creative communities, where it collaborated with storytellers to help them deliver captivating storytelling to audiences.