KEY POINTS
- Netflix has managed to get the right product-market fit for India, CEO Ted Sarandos says
- Netflix India has reportedly experienced "phenomenal growth," with the highest paid net additions for any country worldwide
- The streaming platform also saw a 25% year-on-year revenue growth in the country
India has emerged as one of Netflix's fastest-growing markets and the company is confident that it will have 100 million subscribers in the South Asian country.
The global streaming giant's co-CEO, Ted Sarandos, said Netflix India has experienced "phenomenal growth," with the highest paid net additions for any country worldwide.
Netflix is finally getting its product-market fit right for the South Asian country, Sarandos said, noting that the booming Indian economy is playing a significant role in it. He also said Netflix's decision to drop prices in India and end password sharing has contributed as well.
"If you think about India, generally, I know it's a big population but, in general, how accessible it is to us has a lot to do with the growth of the Indian economy. We are seeing more people in India with the ability, the willingness and desire to pay than we did a few years ago," the CEO said at a media interaction in the Indian city of Hyderabad on Friday.
He also believes hitting 100 million subscribers in India is achievable as the company now has "multiple entry points."
"We used to be a one-price point product (in India). Now we've got multiple entry points that will continue to evolve over time... There is no reason not to think that (hitting 100 million subscribers in India) could happen over time. On what time span, we're not exactly sure," Sarandos said.
When the streaming juggernaut's growth in the U.S. slowed down following a stellar boom during the pandemic, emerging markets across the world became crucial for its overall success and this included India, with its young and increasingly digital population. However, the streaming platform faces stiff competition in the country from Amazon Prime Video and Disney+ Hotstar.
India has been at the center stage of Netflix's expansion plans for Asia since its launch in the country in 2016. In 2018, it revealed it aims to add 100 million subscribers in India. However, five years later, Netflix India is still a long way from meeting its target.
It was reported in October that Amazon Prime Video's 20 million subscribers and Disney+ Hotstar's 40 million subscribers overshadowed the 6.5 million subscribers that Netflix had in India.
In "every single other major market, we've got the flywheel spinning," Netflix co-founder Reed Hastings said last year. "The thing that frustrates us is why haven't we been as successful in India."
Sarandos believes Netflix India is in a much better position today and is confident the country is poised to become one of its top markets.
"India is growing very quickly and that's a testament to getting the product-market fit right," the CEO said. "We saw 30% year-on-year (YoY) growth in total view hours driven by local and global stories, and a 25% YoY revenue growth."
