US based video streaming service provider Netflix has reportedly picked up 1.5 lakh sq ft office space in Bandra-Kurla Complex (BKC), Mumbai’s new business district, on long-term lease to set up its India head office.
The video streaming giant leased the office space spread over two floors in commercial tower Godrej BKC from promoters of D’decor Home Fabrics. Netflix will be paying a rent of 265 per sq ft a month for this office space taking the total annual pay-out to 47.70 crore.
The total tenure of the lease is nine years and the contract includes a clause to cover 15% rental escalation at the end of every three years. India is one of the most lucrative markets for Netflix and it is looking to expand here and focus on original content for the local market.
The company has already released original series like ‘Sacred Games’ and ‘Ghoul’ and will be releasing ‘Selection Day’ on Friday. It has over 12 more original series and films in the pipeline from and for India.
Netflix currently has a staff of more than 40 in India and operates out of its office in North Avenue, Maker Maxity in BKC.
While the California-based Netflix entered India in January 2016 as part of its global rollout, it was registered as a limited liability partnership (LLP) here only in April 2017, when it started commissioning content.
Interestingly, the Indian unit of Netflix has become profitable in its first year of operations, eking out a net profit of 20.2 lakh for 2017-18.
Netflix India reported revenues of 58 crore for FY18. The numbers, however, reflect financials for seven months starting September last year after the actual transfer to local distribution entity from Singapore. On an annualised basis, the revenue numbers translate into about 100 crore for the entire 2017-18.