The online video streaming startup Netflix is looking to increase it’s growth in India and is eyeing a partnership with the Mukesh Ambani led Reliance Jio. The US based company has also set aside a budget of Rs. 2000 crores exclusively for acquiring content in India.
In a LinkedIn post, the Business Head of Reliance Entertainment and Digital, Dr. Kushal Sanghavi said “Netflix, which is two years old in India, has 120 million customers globally. It eyes to reach next 100 million in India with this partnership.” According to Sanghavi, Reliance Jio, which currently has over 160 million paid user base, triggered a tariff war between the major telecom companies of India.
Factor Daily reported, Jio would leverage Netflix’s entire catalogue while charging a royalty fee for selected content that would appeal more to Indian viewers. Sources close to the development said, the two “have been in discussion for a few months, but the deal is yet to be finalised.” “They have also discussed sharing of original content,” the source further added. The Hindustan Times also reported both the companies are in talks for a content production and distribution partnership as well. Along with co developing original content that will be exclusive to Netflix and Jio, other aspects of the partnership at this stage can range from sharing of customer insights to improving the user experience.
During his most recent visit to India, Netflix CEO Reed Hastings said India offers a huge potential to the company, adding, “The next 100 million is from India. We are at 120 million across the world.” At present, Netflix offers subscription plans starting from Rs. 500. Jio, on the other hand, has been a champion of free data for cheaper prices. This partnership would offer unique options to the Indian audience.
In a recent report, the Institute For Competitiveness said Reliance Jio’s entry in India’s telecom market in 2016 led to $10 billion in annual savings for India. Recent estimates also show Jio users on an average consume almost 10 GB of data, 700 minutes of voice and 134 hours of video every month. Meanwhile, on an average, Netflix users stream 1 billion hours of videos per week.