Netflix Update:
Streaming giant Netflix added 1.1 million (11 lakh) paid subscribers in the Asia-Pacific region in the second quarter (Q2) this year.
The Average Revenue per Membership (ARM) was -2 per cent (year-over-year), due to the impact of "our price decrease in India last December as well as plan mix," Netflix told shareholders after declaring Q2 results.
Netflix in December announced new and reduced prices in India, with the mobile-only plan starting at Rs 149 per month.
Users now pay Rs 149 a month from Rs 199 earlier for Netflix's mobile and Rs 199 instead of Rs 499 for its basic plan for the same period.
The standard plan is now Rs 499 per month. The most expensive Netflix plan, which is the premium plan, now costs Rs 649 per month from the earlier Rs 799 per month.
In the first quarter (Q1), Netflix saw an uptick in user engagement in India, as it doubled down on creating more localised content.
"The product fit incorporates subscription prices as well as a willingness and ability to pay. So we have seen a nice uptick in engagement in India. We are definitely taking it in the right direction," Netflix co-CEO Ted Sarandos had said.
In APAC in Q2, Netflix's revenue grew 23 per cent year over year.
"At over $900 million of revenue, APAC is approaching the size of our LATAM business. We added 1.1 million paid memberships in the region (vs 1 million in last Q2)," the company informed.
The company said that it is in a position of strength "given our $30 billion-plus in revenue, $6 billion in operating profit last year, growing free cash flow and a strong balance sheet".
Inputs from IANS
