4 NOV 2020

NEW NETFLIX PARTNERSHIPS LEADS TO GROWTH REBOUND IN ASIA

Approximately 4.6 million Netflix subscribers are projected by the end of this year. The service will end the year with approximately USD 2.4 billion of revenue, equivalent to a 10% share of Netflix's overall revenues.

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Netflix's recent partnership with broadband and mobile company Reliance Jio has led to massive growth in Asia. According to research released by Media Partners Asia (MPA), Netflix India is likely to garner 4.6 million paid subscribers by the end of the year. “India is the only country where we are launching a mobile-only plan,”  Netflix’s CEO Reed Hastings said. “The country is a pillar for us. With the huge population rise, rising middle class, and all the entertainment that we can create out of India, it is an important play in the books of Netflix.”

The report indicates net subscriber growth during the third quarter, as expected, gradually decreasing to 1 million after work from-home procedures surged during the first six months of the year. Hwver, analysts expected a rebound during the fourth quarter, reflecting the positive results of the partnership in India with Reliance Jio.

Earlier in September, Netflix India partnered with Jio to offer a free mobile-only subscription to post-paid subscribers. The monthly cost of the plan started at USD 5.3 (Rs 399) per month. The service is bundled within the company's broadband plan, and customers are also offered an option to upgrade to traditional plans. 

The MPA has estimated Netflix to rise with 4.6 million subscribers in India, adding that Netflix India’s full-year revenues will double thanks in great part to a growing number of India-focused shows, as well as lower-cost cellular-only access.  The base fee stands at Rupees 399 per month (around €4.40) although higher grade options are available.

In terms of the general Asia-Pac region, MPA says Netflix will end the year with approximately USD 2.4 billion of revenue which equates to a 10% share of Netflix's overall revenues. Netflix continues its market leadership across Australia and New Zealand, though growth is inevitably slowing from an already high base, and future business volume will largely be driven by ARPU growth. ANZ is expected to contribute USD 839 million of revenue to Netflix valuables this year.

India is the only country where we are launching a mobile-only plan. The country is a pillar for us. With the huge population rise, rising middle class, and all the entertainment that we can create out of India, it is an important play in the books of Netflix.” Reed Hastings CEO, Netflix

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