Netflix, based in Los Gatos, California, added more paying members in India in the quarter ending September than in any quarter before it. The streaming company said so in its shareholder letter on October 20, as Business Standard reported.
Revenue in India grew 18% from a year earlier on a foreign-exchange-neutral basis, and viewing hours rose 24%. Viewing hours per member grew by low-to-mid single digits. Netflix did not disclose its India revenue in dollars or how many members it added, according to Reuters.
The Netflix app on a smartphone.
Netflix credited a strong content slate. It led with Lock Upp, the company’s first daily reality series, which Netflix said drew more viewing in India than any title it has released there. The letter said “our business in India in Q3 is an example” of what happens when Netflix executes well on its core strategy. The scripted series Musafir Cafe drew nine million views in three months and Operation Safed Sagar eleven million, The Hindu BusinessLine reported.
The quarter also carried Netflix’s first loyalty bundle based on transactions, built with Flipkart, the e-commerce company in Bengaluru, in southern India. Netflix tied its record quarter to the content slate and that bundle together.
Gregory K. Peters, Netflix’s co-chief executive officer and president, pointed to India on the earnings call. “That’s a great example of how the core model works. We deliver on member value, and we get the business outcomes that we are looking for,” he said, according to the report. He said viewing hours in India grew 24% in absolute terms and per member.
The India results came as Netflix answered investor concerns about viewing-hours growth worldwide. Global revenue for the quarter was $12.87 billion, up 12% from a year earlier, according to the same report. Netflix said it wants to accelerate viewing-hours growth and is confident it can do so by continuing to carry out its core strategy.
In August, Netflix announced the Netflix India Storytelling Initiative, a multi-phase investment in India’s creative talent. It will involve partnerships with institutions in India to train the next generation of storytellers, the company said.
Why this matters: Netflix offers American executives a clear data point on India. A US consumer brand posted its largest quarter ever for new paying members there by pairing a strong content slate with a local retail partnership, while investors elsewhere questioned its growth.
