Netflix’s Russian division (operated by Entertainment Online Service LLC) has disclosed its financial results for 2020. According to the SPARK-Interfax database, the company’s revenue for 2,5 months reached 462,9 million rubles. Writes about this “Kommersant”.

Согласно отчёту, из 462 миллионов рублей выручки, представительство выплатило поставщикам и подрядчикам 220,4 миллиона. Чистая прибыль составила 24,3 миллиона рублей, а ещё 2,9 миллиона рублей компания потратила за оплату труда в России.

Experts argue that the disclosed revenue does not 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 subscription cost) … 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 the 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 labeling and data storage of Russians on the territory of the country. This may incur additional costs.

Russian-speaking Netflix began operating on October 15, 2020. 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.