Flipkart Turns Netflix Into a Loyalty Perk

This article first appeared on GuruFocus.

Netflix (NFLX, Financials), the streaming entertainment firm, is collaborating with Walmart-owned Flipkart to provide mobile subscriptions to users of the Indian retailer's loyalty program.Starting Aug. 1, Flipkart Plus members who make four purchases of 299 rupees or more in a calendar month will qualify for a 30-day Netflix Mobile subscription.Eligible purchases can be purchased through Flipkart, Flipkart Grocery or its quick delivery service Flipkart Minutes.The move comes at a time when competition is heating in India's e-commerce and quick-commerce marketplaces, and provides Flipkart another lever to drive repeat purchases. The startup is competing with Amazon on traditional e-commerce and Blinkit, Zepto, Swiggy Instamart and BigBasket on quick commerce.The deal offers Netflix another path to connect with mobile-first users in one of the world's major digital marketplaces, beyond just direct subscriptions.The deal also comes as Flipkart readies for a future public listing in India. The company relocated its holding structure from Singapore to India earlier this year and has allegedly contemplated a listing in Mumbai before March 2027.Now it remains to be seen if the Netflix offer helps Flipkart increase order frequency and customer retention, he added.

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