Netflix in talks to source local Indian content from Reliance affiliate Viacom18 -sources

Network18 Media & Investments

12/06/2020 07:21

* Netflix eyeing growth in India with help of local content
    * Deal is one of Netflix's biggest India content pushes
-sources
    * Netflix's rivals in India include Amazon, Walt Disney 

    By Aditya Kalra and Aditi Shah
    NEW DELHI, June 12 (Reuters) - U.S. video streaming company
Netflix  NFLX.O  is in talks with Viacom18, part of the Indian
conglomerate Reliance Industries' media unit Network18, about a
multi-year partnership to source content, three sources told
Reuters, in a move that would expand a relationship between the
two sides.
    Under the partnership, Network18 affiliates - which include 
its joint venture with ViacomCBS  VIACA.O , Viacom18 - would 
create shows for Netflix to help the U.S. firm expand offerings
in India, where it competes against the video streaming services
of Amazon.com Inc  AMZN.O  and Walt Disney Co  DIS.N .
    A Netflix spokesman in India denied the company was in talks
with Network18 or Viacom18, but did not elaborate. A spokeswoman
for Viacom18 declined to comment on whether any talks were under
way.
    The financial terms of any potential partnership were not
immediately clear and negotiations are still in the early
stages, the sources said, who spoke on condition of anonymity
because the talks are private.
    While the new shows will be used only by Netflix, that does
not mean Network18 and its affiliates will stop creating shows
for other platforms, said two of the three sources. 
    Viacom18 licences content to several platforms, including
Amazon. In 2019, its digital unit partnered with Netflix for
three Hindi-language shows, but two of the sources said the
current discussions were about a much bigger tie-up over several
years.
    "This is a bigger version of the 2019 deal in essence," said
the first source.
    The second source described the ongoing discussions as one
of Netflix's "biggest moves to create local content in India."
    "The scale of Netflix's ambition and aspiration in India is
quite high," said the source, adding that the deal could involve
at least 10 shows, mainly in Hindi.
    Network18 Media & Investments  NEFI.NS  is controlled by
Indian billionaire Mukesh Ambani through subsidiaries of his
oil-to-telecoms conglomerate Reliance Industries  RELI.NS .
    In recent weeks, Reliance has secured nearly $13 billion in
investments from Facebook Inc  FB.O , KKR & Co  KKR.N  and other
investors into its digital unit Jio Platforms, which houses
movie and music apps, and a telecoms venture.  urn:newsml:reuters.com:*:nL8N2DH6YM 
    Some Reliance executives are involved in the Netflix
negotiations, two of the sources said. A spokesman at Reliance
did not respond to a request for comment.
    Netflix's Indian roster includes blockbuster originals such
as "Sacred Games", a crime thriller set in Mumbai and starring
some of Bollywood's biggest names. Its pricing is, however, 
higher than that of Amazon Prime Video and Disney-owned Hotstar.
    Netflix CEO Reed Hastings said in December the company
planned to invest nearly $400 million during 2019 and 2020 to
develop content for Indian viewers.
    Local-language shows are vital for Netflix's growth in
India, which the company in 2018 said could deliver its next 100
million subscribers.  urn:newsml:reuters.com:*:nL3N21D2K2
    While a content deal would boost Netflix's offerings, it
would also aid Network18 whose revenue has been hit as
businesses cut back on advertising and other spending during the
coronavirus lockdown, said one of the sources, adding: "It makes
huge sense (for both companies)."

 (Reporting by Aditya Kalra and Aditi Shah in New Delhi;
Additional reporting by Shilpa Jamkhandiker in Mumbai; Editing
by Euan Rocha,  Matthew Lewis and Edwina Gibbs)
 ((aditya.kalra@thomsonreuters.com; +91-011-49548021; Reuters
Messaging: aditya.kalra.thomsonreuters.com@reuters.net (Twitter:
@adityakalra))