We all know that Netflix earn most of revenue through subscription. But in addition to this Netflix earn money through original content production and partnership as well.
2nd Slide : Netflix’s primary source of income is monthly subscription. The
company offers different subscription plans with different prices. - First is Mobile plan - (Most affordable) - Second is basic plan - (Affordable but slightly higher than mobile plan) - Third is standard plan - (Slightly expensive) - Fourth is premium plan - (Most expensive)
In Mobile/basic/standard/premium plan-
i. Monthly price is Rs.149, Rs.199, Rs.499 and Rs.649.
ii. Video quality and sound quality is fair, good, great and best. iii. Content is available in 480P, 720P (HD), 1080P(FHD) & 4K+HDR. iv. immersive sound is only available in standard and premium plan. v. Supported devices are mobile phone, tablet in mobile plan, and tv, computer, mobile phone, tablet in remaining 3 plans. vi. Allows streaming in one device at a time in mobile and basic plan and allows streaming on two or four devices simultaneously in standard and premium plan respectively. vii. Downloading can be done in one device, one device, two devices and six devices at a time respectively.
3rd Slide : 2nd is Original Content Production.
Netflix invest heavily in producing exclusive content. Original series movies and documentaries not only attract new subscribers but also retain existing ones. By producing original content Netflix can differentiate itself from competitors, build brand loyalty and attract new subscribers this helps in generate revenue. 4th Slide : 3rd is Partnerships.
i. Distribution Partnership : Netflix has formed distribution partnership
with various companies to expand its reach and make its content available to audience. E.g. Telecommunication Companies – Netflix has collaborated with telecommunication companies like Jio, Airtel etc. with their Internet or mobile plans. ii. Device Partnership : Netflix collaborates with leading smart tv’s and mobile devices manufacturers such as LG, Sony, Samsung and OnePlus etc. to ensure that the Netflix app is preinstalled on their devices. iii. Marketing Partnership : Netflix also collaborates with popular brands to promote its content and innocence its brand visibility. E.g. Nike – Special edition collection of sneakers inspired by stranger things. Baskin Robbins – Limited time ice cream flavors and special treats inspired by stranger things shows characters and themes.
All these partnership involves revenue sharing agreement.
5th Slide : Netflix Annual Revenue.
The company’s revenue is growing steadily year and year. However, in 2018, 2019, 2020 & 2021 There is a big jump in the revenue due to COVID 19 pandemic or lockdown. Companies last year revenue was 33,723 million dollars. A 6.67% increase from 2022.