We're still mostly focused on getting a content fit (in India): Reed Hastings
Netflix has announced its Q1 2021 financial results. At the completion of the quarter, the company reported 208 million subscribers, revenue growth of 24%. The company added 4 million new subscribers in the latest quarter.
The company admitted that extraordinary events of Covid-19 led to ‘unprecedented’ subscriber growth in 2020, as it pulled forward growth from 2021, and delayed production across every region.
During the earnings call, the Netflix leadership was asked what kind of confidence they had in Asia considering that they content investment has ramped up significantly in the region.
Theodore A Sarandos, Co-CEO, Chief Content Officer and Director, Netflix said, “The product market fit is what we're always looking for. Now we're programming the service in a way that consumers value it and love it. And it's a bit of trial and error at the beginning of each of the territories as we've rolled out.
“I mean we started launching in international territories with no original programming in local language with local producers. And now we're producing in most corners of the world. And I do think our confidence in investment in Korea and India and Japan has been the success of the investments to date and that it gets us closer and closer to that product market fit that we have in our more mature markets.”
Wilmot Reed Hastings, Co-Founder, Chairman, President & Co-CEO, Netflix said,
We've had enough success in Japan and South Korea for you guys to think about it like Germany or France. Like, it's a big developed rich market. We've got that wired. India, we're still figuring things out. And so that investment takes some guts and belief forward-looking.
Adding further Hastings said, “We've done some pricing experiments in India that Greg can talk about. And I would say we're still mostly focused on getting a content fit and getting broader content. So that's why I'd say that one is a more speculative investment than, say, Korea or Japan, which, again, 5 years ago was very speculative when we did those.
Theodore A. Sarandos, Co-CEO, Chief Content Officer & Director, Netflix, “I would just add that India is a tremendous opportunity. And I think Netflix offers a tremendous opportunity for the creative community to connect with enormous audiences. And it's just, like all great opportunities, it's a long journey, and it's a challenge. And we think it's worth it.”