NEW DELHI: A large price reduction in subscription tiers in India has helped Netflix grow engagement in the country by nearly 30 percent, Year-on-year, in the first quarter of 2023, Netflix has announced.
In order to further increase its market penetration, Netflix will decrease pricing in India by 20–60% in December 2021. Over time, the company has modified its prices to match local needs.
The streaming giant said in its March quarter earnings late on Tuesday that "these reductions -- combined with an improved slate -- helped grow engagement in India by nearly 30 percent year over year while F/X neutral revenue growth in 2022 accelerated to 24 percent (versus 19 percent)."A Netflix lowered pricing in 116 more nations in Q1 after observing its success in India.
Although they made up less than 5% of Netflix's FY22 revenue, the company believes that growing its acceptance in these markets will help it increase revenue over the long term. The company's Q1 2023 sales of USD 8.16 billion was marginally below market expectations.
However, company posted Q1 earnings of USD 2.88 per share, which were greater than anticipated. Revenue in APAC increased 2% year over year, and average paid memberships rose 17%.
In order to draw in a wider audience of customers, the streaming platform claimed it was enhancing its advertising experience with more streams and better video quality. "Given current healthy performance and trajectory of our per-member advertising economics, particularly in the US," it added.
Netflix said it is on track to meet the full year 2023 financial objectives."For Q2 2023, we predict revenue of USD 8.2 billion, up 3 percent year," it said.
India-US trade rose by 8% in 2022-23, fell 1.5% with China
Indian companies will increase their investment in Russia