In FY24, Netflix India's Revenue Increased 30% While its Profit Increased 49%

Nitin Konde, Varun Bhardwaj

Nov 6, 2024 — 3 min read

Netflix India’s FY24 Success

Due to a growing number of subscribers and a more robust selection of local content, Netflix's India division saw a notable increase in net profit and revenue for the fiscal year that ended on March 31, 2024 (FY24). According to the company's most recent filing with the Registrar of Companies, which business intelligence platform Tofler released, the video streaming platform recorded a 49% increase in its earnings after tax to INR 52.4 crore for the year, up from INR 35.3 crore in FY23.

From INR 2,214.1 crore in FY23 to INR 2,845.7 crore in FY24, net turnover increased by 28.5%. From INR 2,228 crore in FY23 to INR 2,895.6 crore in FY24, the company's total revenue increased by 30%.

Netflix reduced their human costs from INR 118.5 crore in FY23 to INR 105.98 crore during the fiscal year, a 10.6% decrease. However, other expenses, which include marketing costs, went up 32.3 percent from INR 2,032.7 crore in FY23 to INR 2,688.4 crore for the year. As a result, the service's overall costs increased from INR 2,174.2 crore in FY23 to INR 2,810.8 crore for the year, a 29% increase.

Netflix and Indian Market

In recent years, India has emerged as a crucial content hub for Netflix and a country that will be increasingly significant for the company's future growth. This occurs as customers in the second-largest internet market in the world show an increasing desire for digital material.

Ted Sarandos, the co-CEO of Netflix, stated last year that India is a "big prize" due to its large population of entertainment-loving individuals who would "ultimately do great" in the nation.

Although Netflix is now one of the most expensive video streaming services available in India, the company has made a number of efforts in recent years to draw users to its platform. This entails launching a mobile-only service and testing out different price schemes across the nation.

India is the Second Largest Market for Paid Subscribers

Without providing any specifics, Netflix said in July that India was its third-largest revenue growth percentage for the June-end quarter and its second-largest country for premium subscriber additions. According to a letter sent to shareholders at the time, the growth was fuelled by huge, successful original titles like Imtiaz Ali's Amar Singh Chamkila and Sanjay Leela Bansali's Heeramandi: The Diamond Bazaar throughout the quarter.

Although Netflix does not disclose its subscriber count by nation, industry estimates place the number of paid subscribers in India at about 12 million. In the Asia-Pacific area, which includes India, Netflix announced 52.6 million members as of the September-ended quarter (Q3 2024).

The business declared in April that starting in Q1 2025, it would no longer publish quarterly paid membership additions. This choice was made because, according to the company, each additional paid membership has a distinct commercial impact because it currently offers many pricing tiers across different countries. Netflix now views engagement as the strongest indicator of member satisfaction and wants to concentrate on revenue and operating margin as its main financial measures.

However, the joint venture between Reliance Industries and Disney, which merges the operations of Viacom18 and Star India, is expected to put the streaming giant up against fierce competition in the nation.