Netflix Rejigs Its Biz Strategy, To Replicate India Model In 116 Countries

Netflix, the California-based OTT player, is rejigging its business strategy. To start with it has done away with its initial business of mail order DVDs. The DVD postal service was launched as an alternative to DVD rental stores. This business generates only $ 126 mn of Netlfix’s annual turnover of $ 31.6 bn. Besides, it is also aggressively cracking down on free password sharing among its subscribers. Recently it launched a new password sharing policy in the U.S. which includes paid sharing. This policy is being introduced to all its 231 mn paid subscribers across 190 countries. Also, on the anvil are more streams, like subscription only and ad driven streams. In the first quarter of 2023 Netflix added 1.75 mn new customers as against 7.66 million customers last quarter. Though the customer additions look lower, it is considered a significant turnaround as it had lost 200,000 customers in the first quarter of 2022. Netflix’s India business too is looking up with engagement growing nearly 30 % in the first quarter of 2023 vis a vis last year. This follows lowering of prices by 20% to 60 % in December 2021, leading to deepening the penetration of the market. This also led to a revenue growth of 24% in 2022 as against 19% in 2021. Netflix now plans to replicate the India model to 116 other countries.