Netflix has seen tremendous growth over the years. One of the reasons behind that is its clever strategy of making local content for every region. The OTT content giant aims to provide something for everyone. Netflix India has been very successful in creating some of the original series such as Sacred Games and Ghoul. Now according to a report from Reuters, in its drive to create more local content for India, Netflix will partner with Reliance Industries media unit Network18. Network 18 with its affiliates — Viacom18 and ViacomCBS will help Netflix in creating and sourcing more local content for the Indian audience. This move from Netflix will help the OTT content outgrow its competitors such as Disney+ Hotstar and Amazon Prime Video.
Viacom18 to Keep Licensing Content for Other OTT Content Houses
Viacom18 has been creating and issuing licenses for its content to other OTT content platforms such as Amazon Prime Video. This deal with Netflix won’t change that all. Viacom18 will keep on producing more content independently. But the shows that Viacom18 creates for Netflix will be used solely by Netflix only. Viacom18 would not have the liberty to license it to any other OTT content platform. Financial terms between the deal of Netflix and Viacom18 were not clear and the negotiations of the deal are still in early stages. But after the report broke out, the shares of Network18 Media & Investments grew by 5%.
Netflix To Invest $400 Million For Developing Indian Content
Reed Hastings, CEO of Netflix, said that the company will be investing $400 million for the year 2019 and 2020 just for developing content in Hindi. Netflix is aiming very high in India. Its partnership with Viacom18 could result in the creation of at least 10 shows in Hindi. This content deal would boost the grip of Netflix on its Indian customers and help in competing against other rising OTT content platform. This would also benefit Network18 since its revenues will grow significantly from the deal with Netflix.
Update: A Netflix spokesman in India denied the company was in talks with Network18 or Viacom18, but did not elaborate.