Netflix Plans to Spend $420 Million to Fight Disney in India
Netflix is in its biggest fight yet with Disney. The company plans to use $420 million to go up against the entertainment giant. The reason is that Netflix wants to focus on India, one of the biggest entertainment markets in the world. It already competes with over three dozen companies in the country, including Disney. On Friday, Dec. 6, Reed Hastings, the chief executive of Netflix, revealed that the company wants to spend $420.5 million on licensing and producing content in India.
“This year and next year, we plan to spend about Rs 3,000 crores developing and licensing content and you will start to see a lot of stuff hit the screens,” Hastings revealed at a conference in Delhi. This latest announcement has the entertainment industry at attention. One executive at one of the rival companies told Tech Crunch that this revelation is “higher than what we have invested in content over the past years.”
Another anonymous source revealed that no streaming service in India is spending close to these figures on content. It hasn’t been revealed how much other streaming services are spending on their content. But according to a KPMG report, Hotstar spent around $17 million producing seven original shows. Eros Now spent close to $50 million building its Indian business by creating 100 new original shows. However, the report didn’t discuss the expenses for licensing content.
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Netflix has since entered India in 2016 as part of its global expansion. The company has since produced over two dozen original shows and movies in the country. Netflix also has several partnerships with local studios such as actor Shah Rukh Khan’s Red Chillies Entertainment, according to Tech Crunch. Netflix currently competes with over three dozen streaming services in India. One of its biggest competitors is Disney’s Hotstar.
Hotstar’s streaming content includes live entertainment, streaming of movies, sports, and television shows, and syndicated content from global networks and studios including HBO and Showtime. In the next decade, the entertainment rivals want to invest their time and money into India. Hastings revealed that he has been “seeing more content made than ever before.” Disney+ jut launched it streaming service earlier this month. It’s said to be available in Indian and Southeastern Asian markets next year through Hotstar.