Netflix plans lower priced plans in India & other markets

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Netflix had expected to add about five million members in the quarter. "The variance relative to forecast was due to greater-than-expected acquisition globally, with strong growth broadly across all our markets including Asia".

Netflix shares have gained about 81 percent this year and are worth six times what they were at the start of 2015, a reflection of the overwhelming faith investors have in the company's lead in video streaming.

In a letter to shareholders Netflix said that it expected operating margin to be nearer 10pc for 2018, meaning that it will see margins drop in comparison to a year ago.

"We don't believe in 'open-ended growth stories.' But, darn, (Netflix) is about as close to one as you can find in today's market", RBC analyst Mark Mahaney said in a note. Netflix already has a bit of a discoverability problem at the moment, so I don't see piling on more as being a beneficial move, especially if a good chunk of that content is going to be low quality or uninspired. Earnings obliterated Wall Street predictions as well, coming in at 89 cents a share-21 cents above the estimate. "That's a really good number for a market that's this mature". Sales grew 34 per cent to $4 billion ($6.1b), meeting Wall Street forecasts.


Rivals have long groused that Netflix can spend ungodly sums without ever having to make money itself.

Netflix has upended the economics of pay TV by offering customers thousands of programmes on-demand for a monthly fee that's a fraction of the cost of a multichannel cable or satellite package.

It isn't that analysts are positive about every aspect of the company's future, of course.

Currently, Netflix is the most expensive streaming service in India, starting at Rs. 500 per month for a single screen and Rs. 650 per month for HD quality.


Rival Amazon, which launched its Indian studios previous year, plans for 17 original programs, including shows in Hindi, Tamil and Telugu.

At the same time it faces competition from the likes of Amazon and Disney. While most of that still funds shows licensed from other companies, original programs account for a growing share.

Most analysts blamed Netflix's disappointing second quarter on a light programming slate.

Hastings, 58, suggested that he wasn't anxious about the competition.


The Los Gatos, California-based Netflix has sharpened its focus on the Indian market and is planning to go more local in a deeply multilingual country. "The game is on".

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