iWorld
In Q2 earnings call, Netflix’s added focus on India
MUMBAI: Though Netflix did not deliver an outstanding performance for Q2 2018, its focus on India has surely risen. In the follow-up conference call, India was mentioned 20 times, which is higher than the last nine quarters combined.
Netflix CEO Reed Hastings admitted the challenges in the Indian market. “We’re way behind YouTube, Hotstar. Those are really the leaders on the internet. There’s so much TV viewing, that linear TV that could be internet viewing and the advantages are tremendous in India for internet viewing because you don’t get the ad load that you see that’s so high in all of the other platforms. So, Netflix is having great success getting established, getting our reputation going,” he commented.
With Raw Stories, Sacred Games, and Ghoul, the company expects to gain good momentum but needs to focus on adding languages and better pricing. “It’s really I think accelerating the brand perception of Netflix as not just an out-of-towner, but someone who is producing content that you care about in every part of the world,” Sarandos commented on local content strategy in the global market. Its first Indian original Sacred Games is doing well while Ghoul is releasing in August.
“Paid net ads are up compared to year ago and forecast to be up on a year-over-year basis in Q3. The fundamentals have never been stronger. Our viewing is setting year-over-year records. So, we’re feeling very strong about the business,” Hastings said in an earnings call.
Netflix isn’t worried since it has observed a pattern of unprecedented growth in Q1 followed by flat growth in Q2 and Q3.
“We started investing our own unscripted programming and have had some really great, out-of-the-box hits with Nailed It and Fastest Cars and Queer Eye, that are doing great with our watchers relative to building an audience. Also, you saw Queer Eye did quite well at the Emmy nominations announced last week. We’re really excited with the progress and the speed to market we’ve been able to do our unscripted shows at really high quality,” Netflix chief content officer Ted Sarandos said.
While the good romantic comedies have gradually disappeared in the last two decades, the internet content king is reviving the old charm with movies like Kissing Booth, Set It Up. The movies have been delivering good viewership, as claimed by the company. Other than this genre, Netflix will have movies with critically acclaimed directors like Martin Scorsese and Alfonso Corona next year.
While the company has planned to invest $8 billion only in content, it will continue to operate with debt to finance as it remains the most cost-effective source of capital for the company. “Obviously, we’d love to get to that point where we’re organically and self-funding content. We do see a point where we can get there. But until we do, we see debt as the right choice in terms of cost of capital,” Netflix chief financial officer David Wells said. This strategy may pay off well if it can raise the price with the addition of subscribers.
Going forward, Netflix wants to highly emphasise on products too. From better mobile UI, smart downloads to faster TV experience, everything is being talked about. Along with happy subscribers, it wants to make more people aware of the brand. Despite a worse Q2 result, it will definitely continue to be a good choice for investors.
iWorld
Tech firms tweak office operations amid LPG shortage concerns
Infosys, HCLTech and Cognizant adjust cafeteria services and work policies.
MUMBAI: When geopolitics turns up the heat, even office cafeterias start feeling the burn. Several technology companies in India are adjusting workplace operations and food services as concerns over a nationwide shortage of liquefied petroleum gas (LPG) grow following escalating tensions in West Asia. Major IT firms including Cognizant, Infosys and HCLTech have begun rolling out contingency measures to reduce dependence on office cafeterias that rely heavily on commercial LPG.
The disruption stems from rising geopolitical tensions involving Iran after military action by the United States and Israel reportedly led to the closure of the Strait of Hormuz, a critical global shipping route for oil and gas supplies. The closure has disrupted the movement of LPG and liquefied natural gas across international markets, triggering concerns about supply constraints and price volatility.
According to a report by The Times of India, Cognizant has advised employees to bring their own meals to office where possible to reduce reliance on office cafeterias dependent on LPG based cooking.
The company has reportedly told staff that it is preparing for potential disruptions driven by supply prioritisation, price fluctuations and pressure on vendor networks.
As part of contingency planning, Cognizant is identifying alternative food vendors that do not rely on LPG. These include kitchens using induction based or solar powered cooking systems.
The company is also exploring partnerships with cloud kitchens that operate on electric or solar power to ensure uninterrupted food supply in case conventional cooking gas availability worsens.
Additionally, Cognizant is evaluating the possibility of expanding work from home or hybrid arrangements for non critical roles, partly to reduce commuting exposure if fuel prices rise sharply due to global energy disruptions.
Meanwhile, HCLTech allowed employees at its Chennai office to work from home on March 12 and March 13 after cafeteria vendors were unable to operate because of the LPG shortage.
Several food service vendors at the campus reportedly suspended operations as they struggled to secure cooking gas supplies, prompting the company to permit staff to work remotely for the two days.
Infosys has also issued internal advisories across multiple locations, including its campuses in Bengaluru and Chennai.
The company informed employees in Bengaluru that cafeteria services would continue but with reduced menu options due to concerns around commercial LPG availability.
As part of the temporary adjustments, live food counters have been suspended, and employees have been encouraged to bring home cooked food while the situation evolves.
While LPG shortages in India remain a developing situation, the measures taken by these technology firms highlight how global geopolitical disruptions can ripple through unexpected corners of the economy, even the humble office lunch.
For companies with large campuses and thousands of employees relying on daily cafeteria services, cooking fuel shortages can quickly turn into an operational challenge. Until global supply chains stabilise, many workplaces may find themselves rethinking everything from food sourcing to flexible work policies.
