Netflix India: 24% Revenue Surge in FY23 on Price Cuts & Expanded Content

Fueled by more affordable subscription options and an expanded content library, the Indian branch of the online video streaming platform Netflix has recorded a 24% surge in revenue for the fiscal year 2023, reaching Rs 2,214 crore. According to regulatory filings with the Registrar of Companies (RoC), Netflix India's net profit experienced a remarkable 75% increase in the last fiscal year, climbing from Rs 20 crore in FY22 to Rs 35 crore. It is important to note that these financial figures do not encompass Netflix's content investments in India, as those are reported separately through Los Gatos Production Services India LLP. This entity achieved a gross turnover of Rs 3,191 in FY23, with 99% of it attributed to the export of services.

Netflix's decision to reduce subscription prices in December 2021 resulted in a surge in customer and subscriber additions throughout the calendar year 2022. The price cuts, ranging from 20% to 60%, were disclosed by Netflix's Chief Financial Officer, Spencer Neumann, during a quarterly earnings call in April of the previous year. Neumann noted, "…in December 2021, we dropped prices in India between 20% to 60%. We saw engagement over the past year grow by about 30%, high growth in paid net adds."

As of now, Netflix's subscription plans in India vary from Rs 149, which is a mobile-only plan, to Rs 749. In July of the preceding year, the streaming giant, headquartered in the United States, implemented measures to combat password sharing among users in multiple countries, including India.

In FY23, Netflix's expenditure on personnel expenses increased by 30%, amounting to Rs 125 crore. Additionally, its other expenses, comprising marketing and distribution costs, witnessed a 24% rise, reaching Re 2062 crore.

While the revenue growth in FY23 surpassed the 16% increase observed in FY22, it fell significantly short of the remarkable 66% surge witnessed in FY21 when consumer internet businesses were experiencing a pandemic-driven boom.