Netflix is pouring money into India.
Speaking at an event in New Delhi, Netflix (NFLX) - Get Netflix, Inc. Report CEO Reed Hastings told an audience that the company will spend about $420 million creating content for India next year. Netflix shares ticked up 0.93% on Friday to $305.67.
As reported by the Economic Times, the majority of the spending will be focused on original programming. Netflix spent roughly the same amount in India this year, according to the report.
With growth in U.S. subscriptions slowing -- it added 500,000 domestic subscribers in the third quarter -- international markets such as India are viewed as the next chapter of Netflix’s growth story.
Hastings has set a target of attracting 100 million subscribers in India. According to the research firm IHS Markit, Netflix has roughly 4.1 million subscribers in India right now. Netflix charges significantly less for subscriptions in India than it does in the U.S., however.
Netflix also plans to reveal more about growth in various regions. In October, it told investors that for the fourth quarter and thereafter, it will disclose revenue and membership figures in four regions: Asia Pacific (APAC), Europe, Middle East & Africa (EMEA), Latin America (LATAM), and the U.S. and Canada (UCAN).
Netflix shares are up 14% so far this year.