The US video streaming giant Netflix is planning to partner Reliance Jio to reach out masses.
Both the companies are in discussion for a few months to strike a deal that will mutually benefit them, said a Factor Daily report quoting sources close to the development.
Netflix, which is two years old in India, has 120 million customers in the world. Netflix has claimed to have grown five-fold in India. Though it has not public its customers’ base in the country. Content is the topmost agenda for Netflix as it has set aside a Rs 2,000 crore budget exclusively for acquiring content in India.
It eyes to reach next 100 million in India with this partnership.
Reliance Jio, that has been bringing a major chunk of India’s 1 .4 billion population on the Internet, has over 160 million paid users base. Jio, which started services in September 2016, has triggered a tariff war, offering months of free data and charging cheap rates in the country with its 4G network.
It has given wings to video and audio streaming companies in India. According to KPMG, since the launch of Jio video streaming apps have witnessed 336 per cent rise in usage. In 2016, video streaming made for 49 per cent of data consumption in India and is expected to reach 75 per cent by 2021.
Besides Jio, all the content creators in the space have witnessed growth in viewership. This makes Jio ideal partner for any video streaming player in India.
In coming days, the video will only be consumed more. According to a report, video is expected to dominate two-thirds of internet consumption by 2021.
Meanwhile, both the firms have not confirmed the report of partnership talks. Entrackr queries in this regard are yet to elicit a response from them.
Earlier, in February this year, Reed Hastings, during his visit to India, had said that the company plans on optimising the gap in India where Indian TV production value is much lower than the rest of the world. India as one of the most important markets in the world for Netflix, he added.
He also praised Jio for its telecom revolution. “Reliance Jio has done a great job and has transformed the network in India. Some people around the world can do the same as Jio so that more and more people get connected to Internet,” Hastings had said.
Globally, he has outlined an $8 billion budget for content this year. However, he thinks it’s not enough. Next year, it will be higher.
By end last year, Netflix had claimed 117.6 million subscribers worldwide and is gaining ground in the international market at a very fast pace.
Currently, Netflix offers video content at the premium subscription cost at Rs 500-800 per month.
Whereas Jio offers video content free. With kind of deep pockets, it has, it may sustain for longer period than most of its competitors. That’s what makes it a deal for Netflix in India.