Ted Sarandos on Why Local Content Wins, AI's Role in Creativity, and Advice for Young BIZ Experiencess "Every time, for the past 10 years, I've heard that India is two years away. I feel like it's never been more true right now. This feels India is on the precipice of something very big," says Ted Sarandos, co-ceo, Netflix

India's over-the-top (OTT) streaming market is experiencing explosive growth, projected to soar from a valuation of USD 4.5 billion in 2024 to USD 27.2 billion by 2033, registering a robust compound annual growth rate (CAGR) of 19.7 per cent, according to IMARC Group. Netflix Inc. has particularly benefited from this growth, marking India as a standout performer in its recent global quarterly results.

Netflix's second-quarter earnings report for 2024 highlights India as the streaming giant's second-largest market for "paid net subscriber additions" and third-largest in terms of "revenue per cent growth." Globally, Netflix revenues rose by 17 per cent, hitting USD 9.56 billion, with an improved operating margin of 27 per cent compared to 22 per cent the previous year. Its worldwide subscriber base surged from 269.60 million in Q1 to 277.65 million in Q2 2024.

In the Asia-Pacific (APAC) region alone, Netflix's subscribers increased from 47.50 million to 50.32 million, and the revenue for the region grew to USD 1.05 billion. India was pivotal in this growth trajectory.

During the Podcast with Nikhil Kamath, Netflix Co-CEO Ted Sarandos shared valuable insights into content strategy, future disruptions, AI's role in creativity, and his advice to aspiring young BIZ Experiencess. Here are four key takeaways from his perspective:

Local Content Hits Global

When asked about investing in content, Ted highlighted the unpredictability yet immense potential of locally authentic storytelling.

"People have such incredibly diverse tastes. What you love, I may not, and vice versa. Because of this, creating something genuinely good within its own context is always going to resonate somewhere. It's impossible to predict a global sensation like Squid Game. The Korea team knew it would be successful in Korea, and they were right, but no one anticipated its worldwide appeal. Interestingly, local hits have the best potential to become global phenomena precisely because they're authentically excellent in their own contexts..."

"...A forced combination like pairing the star of Squid Game with Shah Rukh Khan and Brad Pitt creates an unfamiliar mishmash that no audience truly connects with. The idea that authentically local storytelling holds the highest global value is unintuitive yet absolutely true. When you watch Squid Game, it's distinctly Korean in its style and storytelling, uncompromising in its cultural specificity. Yet viewers globally resonate with its universal themes," explained Sarandos.

Next Big Disruption: AI?

Reflecting on future disruptions in media, Ted suggested that the next significant shift will occur in creative capabilities rather than distribution.

"What could disrupt entertainment as massively as the internet did? It's unlikely to be in distribution again; it's more likely to be in creativity. AI will certainly be part of it, as will virtual production. These tools are advancing fast and can elevate storytelling to new heights. I'm not afraid of AI, and I hope creators aren't either, because it offers powerful tools to tell stories better and even make movies that weren't possible before."

Further highlighting the most talked-about topic, 'AI can replace humans.'

Sarandos said, "I don't think AI will replace what humans uniquely bring like emotion, performance, writing but it will enhance the creative process. Take de-aging technology: when we made The Irishman, around USD 30 million of the budget went into just that. It was incredibly disruptive, extra camera rigs, facial markers, and complex workflows. Today, we can do the same thing for a fraction of the cost. In fact, we just made a film called Pedro Páramo, directed by the cinematographer from The Irishman, and the entire movie cost less than the de-aging budget for that earlier film. That's how fast the tools are evolving," he noted.

What for Young BIZ Experiencess?

For young Indians aspiring to enter media and content BIZ Experiencesship, Ted advised patience and practical learning. "Start at the bottom. Be a production assistant on a film. Go get coffee for a writer's room," he suggested.

According to him, understanding every aspect of the business by experiencing it firsthand will lead to true success.

Further, reflecting optimistically on India's rapidly evolving market, Ted concluded with enthusiastic anticipation: "Every time, for the past 10 years, I've heard that India is two years away. I feel it's never been more true right now. This feels like India is on the precipice of something very big."