In the present information-overloaded terrain, people always strive for a perfect place to relax both their souls and bodies. Streaming media acts as nexus to all those questers. In contemporary society, streaming media like Amazon Prime, Hotstar, etc. are creating flashes in the global market. Among all these Netflix (India), one of the giants of streaming media which has a net income of US$1.866 billion and 167 million subscribers worldwide.
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The Influx of Netflix to India
Netflix made its accession to the country in the year 2016 as part of its expansion ideas, and the very next year, it started its base in India, Netflix reached 5 million subscribers.
Sacred game is India’s first Netflix original content, and this sacred game is nominated for Emmy awards in the year 2019. They are the diverse reason for Netflix to choose India as its main hub for streaming; some of them are a huge market, cheap labour, and enormous content.
India is a country with more than 135 crores population, which generally creates a colossal market, and the rate of yearly pass-outs results in cheap labour, not only to the streaming world but to all the possible spheres.
Netflix has to bow it’s head to some of the limitations headed by the Indian government like Limited Liability Partnership (LLP) and other tax statements.
Recently the Indian government is forcing all the MNC’s including Netflix, to localize the data; this step could have a great hit to its growth.
Investment Made by Netflix to India
India even had many privileges from Netflix, like investments, creating employment, etc. Netflix started to invest in the Indian market from the year 2018, and its first investment is 600 crore dollars in creating India’s original content programming.
Apart from commercial benefits, it provided a very special platform to Indian’s in entertainment, stress management and helped in smooth truncations of nationals to digital media from traditional television content. These are some of the main benefits India gained from Netflix.
Profits of Netflix
According to the census, Netflix had a total net income of over 1.86 billion U.S. dollars in 2019, whilst the company’s annual revenue reached 20.15 billion U.S. dollars. This is data streamed by veratech intelligence. All this sweeping ground victory is not in one go, but Netflix has faced a lot of problems.
It applied huge strategies and played many risky games. It is said that India has 1.3 billion costumers for streaming media for total 329 streaming services and much of these numbers are belongs to Netflix.
in the year 2016 the company did not make any progressive results this is due to many reasons some of them are lack of local content, lack of actability and many administrative issues.
But it slowly started copping up with time and released local content in the following years this step of Netflix made huge profits to the company.
Total income of Netflix India in the country grew 8 times in 2018-19 and reached 470 crore rupees, compared with 58 crore a year ago. Net profit increased to 5.15 crore rupees from 20 lakh rupees in 2017-18 – more than 25 times.
India’s Contribution to Netflix
The entrance of Netflix to India is a global trumpish with good on both sides. Indians had enough contented and entertained with its entry, and even Netflix had equal benefits too.
The company made India as its main base for creating content to the globe. Two of every three people watching India’s content is from outside of the country.
And it is even clear from the international census that 27 million people outside the country watch animated shows created in India.
This is the reason the company never wants to lose its command in streaming media in India, so it recently announced that it is going to invest 700 million dollars in creating Indian content.
Policies Followed by Netflix India
As Netflix has to face many problems in its field, so it launched local content that has a progressive result, and later it has to compete with other giants in the country at started a new and exacting step to flood cheap and free content to the market.
Apart from this, it made the most reputed people in society like Karan Johar, etc. to create content for it.
”A combination of factors including original content for India, partnership with airtel for better access to market, and fixing payment issues helped Netflix”___Mohit Yadav.
It is said that subscribes rate to Netflix has increased in post-July of this month after introducing its 199 plan. Netflix always tries to experiment with new ideas and new content because to survive its position in the streaming market of the country.
As India, a hot spot for more than 35 services, there would always have a content war in the country, and Netflix has a very secure position in it.
Netflix has many criticisms across the world for the lack of accountability and accessibility, but recently the Netflix has another criticism in its list, and this because of Netflix’s relation with India.
Many of US critics have reported the Netflix is losing its native subscribes, but Netflix has much concerned with India.
Apart from this, the company has faced another problem, which is a court case on sacred games, which is Netflix’s first original Indian content.
Impact of COVID-19 to Netflix India
Netflix is going to lower its traffic by 25% for 30 days. Due to the outbreak of the coronavirus pandemic, the Indian government is going to limit the band length to all the streaming services including Netflix India.