India becomes 2nd country in terms of paid user additions for Netflix in Q2

For Netflix, in Q2, India was its No. 2 country in terms of paid net adds and No. 3 in terms of revenue percent growth, the streaming giant mentioned in its quarterly earnings. This was aided by big successful titles like Heeramandi: The Diamond Bazaar, which has 15 million views, and Amar Singh Chamkila with 8.3 million views — as well as licensed films such as Laapataa Ladies and Shaitaan.

In its earnings call, Theodore A. Sarandos, co-CEO, president & director, Netflix, said the product market fit is driving its ability to attract and retain members and monetize them. 

“So I feel like what's going on in the quarter has been this ongoing build. We had this great show, Heeramandi. Sanjay Leela Bhansali is one of the most celebrated filmmakers in India, and he took on this incredibly ambitious series and brought it to screen on Netflix, directed every episode, and it's our biggest drama series to date in India. So on top of that, our original films and our license films are films in the pay TV window, immediately following theatrical, which continue to thrill our members,” he said.

Sarandos said there’s plenty of room to grow in India as long as Netflix keeps thrilling the audiences. 

“So we pick them well, we program well. We improve the product market fit. We improve engagement, we grow members, we grow our revenue. It's the same formula, I think everywhere we go. I think India's growth is a story that we see around the world playing out very similarly,” he adds. 

On Thursday, Netflix announced its second-quarter earnings, revealing an addition of 8 million subscribers, bringing its global subscription base to 278 million. The streaming giant reported a net income of $2.1 billion and revenue of $9.56 billion, marking a 17 percent increase compared to the same period last year. It now projected revenue growth of 14-15% for the year.

Greg Peters, co-chief executive, told investors on the earnings call, that there was an average of “two hours of viewing per member per day.” 

In its forecast, the company projects a 14% revenue growth in Q3, anticipating fewer paid net additions compared to the same quarter last year, which experienced the first full-quarter impact of paid sharing. Average revenue per subscriber, meanwhile, will come in flat in the next quarter.

With regard to its advertising-supported tier, it now accounts for more than 45% of all sign-ups in 12 countries where it has been made available.