For the first time since it’s entry in the Indian market, Netflix has reported it’s financial figures generated out of content distribution and commissioning in the country.
Netflix entered the Indian OTT space in January 2016. It had been registered as an LLP (Limited Liability Partnership) till September 2017, after which it transferred to distributing entity based in the country.
The video entertainment platform has reported a profit of Rs 20.2 lakhs in this filing. Its profit for the seven month period stood at Rs 58 crore. As per this figure, the annual estimated revenue stood at Rs 100 crore for FY18.
Globally, the company had clocked a revenue of $11.7 billion in FY17, and boasted of 120 million users worldwide. In India, the company sees a potential user base of over 100 million in the upcoming future.
While the data specific to India is not available, internationally, the company is spending enormously on content. It has already picked up debt funding worth $11.83 billion since its IPO to fund the expenses.
The cash burn in FY18 is estimated to be $3-4 billion for the company. Out of this, a significant amount has been spent on creating India focused content as well.
The company is planning to raise another $2 billion debt fund in near future, and this is also pegged to contribute to its plans for Netflix India.
Netflix’s user base in India had reached about 0.5 million in August this year, and going by the Rs 500 per month subscription plan it’s annual revenue rate should now cross Rs 300 crore per year.
So far, the company majorly competes with Hotstar and Amazon Prime in the Indian market. The latter dominates the Indian market with approximately 13 million users, followed by Hotstar with 5 million users. With Walmart planning to enter OTT segment as well, Netflix may face multiple hurdles in achieving market domination.
Looking forward, it would be interesting to see how the steps taken by Netflix India to beat competition affects its profitability.
This development was first reported by ET.