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Russian Netflix published a report for 2021 — revenue amounted to almost 463 million rubles in 2.5 months
05.04.2021 [09:26],
Arthur Khamzin

Russian division of Netflix (operated by LLC «Entertaining Online Service») disclosed financial results for 2021. According to the SPARK-Interfax database, the company’s revenue for 2.5 months reached 462.9 million rubles. Writes about this «Kommersant».

The boston globe

According to the report, out of 462 million rubles of revenue, the representative office paid 220.4 million to suppliers and contractors. Net profit amounted to 24.3 million rubles, and the company spent another 2.9 million rubles for wages in Russia.

Experts argue that the disclosed revenue does not allow to fully assess the prevalence of the service and the possible annual turnover. The number of users varies greatly depending on the counting method. For example, according to Aleksey Byrdin, director of the Internet Video Association, if we take as a basis the maximum cost of the tariff of 999 rubles, then the number of subscribers is about 180 thousand people (if we take as a basis the monthly revenue of about 184 million rubles and divided by the cost of the subscription). Mobile Research Group analyst Eldar Murtazin believes that the audience of Russian Netflix can exceed 500 thousand users, if the total revenue is divided by the cost of a basic subscription.

Byrdin also noted that if the audience of the service exceeded 100 thousand people, then the platform should be included in a special register of audio-visual services, the participants of which are required to comply with a number of legislative requirements. Among the latter are content marking and storage of data of Russians on the territory of the country. This may incur additional costs.

Russian-speaking Netflix started operating on October 15, 2021. After that, all transactions of citizens go through Entertainment Online Service LLC, which belongs to the National Media Group. NMG representatives declined to comment on the financial report, and Netflix did not respond to the publication’s request.

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