Netflix leadership is considering rolling out paid password-sharing policies in India
According to the company, more than 100 Mn households share Netflix password
Talking about the pricing for the Indian market, Ted Sarandos, co-CEO said that India is a ‘big prize’
Netflix leadership is considering rolling out paid password-sharing policies in India, something the streaming giant is doing in Latin America and Canada. The consideration is, reportedly, in line with the company’s long-term vision for the country.
In Latin America and Canada, Netflix has already rolled out password-sharing policies and seen a significant impact on the number of subscribers. The company said that more than 100 Mn households stream through account sharing, which makes up 43% of the user base.
According to the company statements, the password sharing policy has worked for them in reverse mode. Though the initial figures of subscribers and revenue came down, later sharers bought their accounts while some users paid the extra charge to share passwords.
Commenting on the idea of paid password sharing policy, Spencer Neumann, chief financial officer, referred to the subscription price drop in India. Following the price drop in India in 2022, audience engagement grew by about 30%. He said that the streaming giant is expecting growth in a similar format post the rollout of paid password sharing policies.
Adding to this, Greg Peters, co-CEO, Netflix said, “It’s better for the business. Ultimately, it sets us up structurally to have more members to have a one-to-one relationship with.”
The number of subscribers, according to a Wion report, has reportedly hit a record of 232.5 Mn in Q1 2023.
Talking about the pricing for the Indian market, Ted Sarandos, co-CEO said that India is a ‘big prize’. The enormous population of entertainment lovers reflects the business opportunities in the country. “It is a very specific market in terms of local content,” Sarandos added.
This year, addressing at the ET Global Business Summit, Sarandos said, “Unlike many companies in California, we manage India in India.’’ He added that FY 2022-23 was the most successful year for Netflix in India.
Towards the beginning of 2023, a Research and Markets study found that the Indian OTT market value stood at INR 249.09 Bn in FY 2022 and is expected to reach INR 581.21 Bn by FY 2027 at a CAGR of ~16.58% during the FY 2023 – FY 2027 period.