Amazon, Netflix Sign Same Studio for Indian Content – Report

Amazon (AMZN) and Netflix (NFLX) have both partnered with Clean Slate Filmz to supply them with content for their streaming services in India, Bloomberg reports. Shares of AMZN rose 1.33% to close at $2,890.88 on Monday while Netflix fell 2.60% to $387.15.

Despite their rivalry, the American streaming giants have turned to the same Indian studio with a track record of producing hit films to bolster their competitiveness in the important Indian market. India’s subscription video revenue hit $0.8 billion in 2021 and is forecast to grow to $2.1 billion by 2026, according to analysts at Media Partners Asia.

Amazon, Netflix, and other streaming services in India have ordered content worth about $54 million from Clean Slate Filmz, and over the next 18 months, the studio plans to release at least eight films and series to these clients. The studio produced the 2015 feature film NH10, which explored the practice of honor killings in India. It also produced Paatal Lok, an acclaimed crime series that streamed on Amazon.

While Netflix has revealed its plans to stream three productions from Clean Slate Filmz, Amazon has not disclosed details of its arrangement with the Indian studio.

Cut-Throat Competition

Competition in India’s video streaming market is getting so tough that Netflix was recently forced to lower its prices to try to gain market share. Indian consumers are highly price-conscious.

In terms of the number of subscribers, Walt Disney’s (DIS) Disney+ Hotstar led the way in India with a 50% market share in 2021. Disney charges a lower price than Netflix. Amazon’s subscriber base accounted for 19% of the market and Netflix captured 5%.

In terms of revenue, however, Netflix led with a 29% market share. Disney and Amazon captured 25% and 22% of the revenue, respectively.

Analysts’ Take

Mizuho Securities analyst James Lee recently maintained a Buy rating on Amazon stock with a price target of $3,950, which suggests 36.64% upside potential.

Consensus among analysts is a Strong Buy based on 30 Buys. The average Amazon price target of $4,150.83 implies 43.58% upside potential to current levels.

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