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Is Netflix (NFLX) Planning Content Deal With India's Viacom18?
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Netflix (NFLX - Free Report) is looking to further strengthen its footprint in India. Per a Reuters report, the company is in discussion with Viacom18, a joint venture between Reliance Industries and ViacomCBS , to expand its local content offerings that will boost its competitive edge against Amazon (AMZN - Free Report) , Disney (DIS - Free Report) and other local players.
Notably, India currently has almost 40 over-the-top (OTT) platforms. Apart from the streaming giants Netflix, Amazon prime video and Disney+ Hotstar, other notable players in the country’s streaming space include Youtube, SonyLiv, Zee5, Voot, Alt Balaji, MX Player et al.
Netflix faces stiff competition not only in terms of content but also pricing in India as its premium plans are considered one of the most expensive in the country. However, the company lured mobile phone users with its cheaper subscription plan of INR 199 per month and a continuous original regional content expansion.
Shows like Sacred Games, Ghoul, Selection Day, Little Things, Lust Stories, Ghost Stories, and Delhi Crime were well received by the audience as well as critics in India. Reportedly, the company has a pipeline of around 24 feature films and 16 web series in India. These shows are in various genres, such as young adult, drama, thriller, horror and comedy.
Hence, a multi-year partnership for content with Viacom18 bodes well for Netflix.
Netflix’s Regional Content Focus: Key Catalyst
Courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, Netflix has been dominating the streaming space.
Notably, Netflix generated 53.1% of first-quarter 2020 revenues from its international operations. It is working on projects across India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. The company is also expanding in Africa.
Per a Reuters report, Netflix inked a deal with Africa’s pay-TV group, MultiChoice, which currently serves 19.5 million households in 50 African countries.
Moreover, Netflix recently inked a multi-title partnership deal with Mo Abudu, an acclaimed Nigerian producer. Mo Abudu’s EbonyLife Media will create two original series as well as multiple films and a licensed series.
The partnership will see adaptations of two critically-acclaimed Nigerian authors literary works, which are a series based on Lola Shoneyin’s best-selling debut novel, The Secret Lives of Baba Segi's Wives and a film adaptation of Wole Soyinka’s Death And the King's Horseman.
These partnerships are further expected to strengthen Netflix’s content portfolio, thereby attracting subscribers. The company expects to end the second quarter of 2020 with 190.36 million paid subscribers globally, up 25.6% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Is Netflix (NFLX) Planning Content Deal With India's Viacom18?
Netflix (NFLX - Free Report) is looking to further strengthen its footprint in India. Per a Reuters report, the company is in discussion with Viacom18, a joint venture between Reliance Industries and ViacomCBS , to expand its local content offerings that will boost its competitive edge against Amazon (AMZN - Free Report) , Disney (DIS - Free Report) and other local players.
Notably, India currently has almost 40 over-the-top (OTT) platforms. Apart from the streaming giants Netflix, Amazon prime video and Disney+ Hotstar, other notable players in the country’s streaming space include Youtube, SonyLiv, Zee5, Voot, Alt Balaji, MX Player et al.
Netflix faces stiff competition not only in terms of content but also pricing in India as its premium plans are considered one of the most expensive in the country. However, the company lured mobile phone users with its cheaper subscription plan of INR 199 per month and a continuous original regional content expansion.
Shows like Sacred Games, Ghoul, Selection Day, Little Things, Lust Stories, Ghost Stories, and Delhi Crime were well received by the audience as well as critics in India. Reportedly, the company has a pipeline of around 24 feature films and 16 web series in India. These shows are in various genres, such as young adult, drama, thriller, horror and comedy.
Hence, a multi-year partnership for content with Viacom18 bodes well for Netflix.
Netflix’s Regional Content Focus: Key Catalyst
Courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, Netflix has been dominating the streaming space.
This Zacks Rank #2 (Buy) stock has returned 29.2%, outperforming its industry and the S&P 500 composite on a year-to-date basis owing to a growing international subscriber base. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Year-to-Date Performance
Notably, Netflix generated 53.1% of first-quarter 2020 revenues from its international operations. It is working on projects across India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. The company is also expanding in Africa.
Per a Reuters report, Netflix inked a deal with Africa’s pay-TV group, MultiChoice, which currently serves 19.5 million households in 50 African countries.
Moreover, Netflix recently inked a multi-title partnership deal with Mo Abudu, an acclaimed Nigerian producer. Mo Abudu’s EbonyLife Media will create two original series as well as multiple films and a licensed series.
The partnership will see adaptations of two critically-acclaimed Nigerian authors literary works, which are a series based on Lola Shoneyin’s best-selling debut novel, The Secret Lives of Baba Segi's Wives and a film adaptation of Wole Soyinka’s Death And the King's Horseman.
These partnerships are further expected to strengthen Netflix’s content portfolio, thereby attracting subscribers. The company expects to end the second quarter of 2020 with 190.36 million paid subscribers globally, up 25.6% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>