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Netflix is investing more in India
Jingyue Hsiao, Taipei; Yusin Hu, DIGITIMES 0

Netflix's first post-production facility in India will open next year, according to Livemint. Amazon Prime Video in India is streaming third-party content from eight Indian content providers.

Netflix CEO Reed Hastings recently took a trip to India and said Netflix is going to increase investment in India. Last year, Netflix had 4.6 million Indian users. The number is expected to rise to 6.1 million this year. Compared to India's total population, six million is just a small portion.

Netflix India generated only US$120 million in FY2020, accounting for not even 1% of Netflix's total global revenue of US$20.2 billion in the previous financial year.

According to Livemint, Netflix is more expensive than its competitors in India, and its content is less favored by the Indian audience than other streaming services.

Original series has always been the highlight in the streaming world. While original content is effective in stimulating user growth, it is also a blackhole of investment.

At the same price level, Disney+ Hotstar live streams the Indian Premier League, which brought their users from 10 million to 51 million within just 12 months. Amazon Prime Video provides not only entertainment but also online shopping services and its annual subscription fee is lower than that of Netflix.

Not long after launching in India, Netlfix especially cut out a mobile device plan for India's large mobile phone user base for about US$2.7 every month. But the plan has caused contribution per user to decline.

According to data from Media Partners Asia, each Netflix user in North America contributes an average of US$13.30 every month, while each user from the Asia-Pacific countries contributes only US$5 and less.

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