How to Buy Netflix Shares from India?

Investing in global stocks has become increasingly popular among Indian investors to benefit from the growth potential of international markets and diversify their portfolios.

Netflix stands out as a global entertainment giant that has gained audiences’ attention worldwide. Its innovative streaming model and vast content library have driven impressive growth, making its shares a sought-after asset for investors.

But how can you own a piece of this company? Platforms like Appreciate Wealth have made it easier than ever for Indian investors to access global stocks. Read along to know more!

Understanding Netflix Shares

Since its initial public offering (IPO) in 2002, Netflix’s stock has experienced a remarkable journey, reflecting the company’s evolution and the changing dynamics of the entertainment sector. From its early days as a DVD rental service to its existing position as a global streaming giant and content creator, Netflix’s share price has seen significant fluctuations.

Overview of Netflix as a Company

Netflix transformed from a DVD rental startup in 1997 to a global streaming powerhouse. With 270 million paid memberships across 190 countries, it provides a huge library of TV series, films, and games in multiple languages.

The company’s journey includes pivotal moments like launching streaming services in 2007, debuting original content in 2013, and achieving global reach in 2016. Netflix’s success stems from its ability to adapt to changing consumer preferences, invest in original content, and navigate the competitive landscape of digital entertainment.

Why Invest in Netflix (NFLX)?

Investing in Netflix (NFLX) shares can be an attractive option for those looking to tap into the booming streaming entertainment industry. Why? Let’s find out:

Strong Market Position and Brand Recognition

Netflix’s first-mover advantage in video streaming has allowed it to build a vast subscriber base across diverse markets. This strong brand recognition gives Netflix a competitive edge, helping it retain and attract new customers.

Consistent Growth and Innovation

Netflix invests heavily in original programming, which not only attracts new subscribers but also helps retain existing ones. Also, the company’s willingness to experiment with new formats, interactive content, and cutting-edge technologies demonstrates its commitment to staying ahead of the curve in a rapidly evolving industry.

Financial Performance

Netflix’s financial results have been impressive, showcasing strong growth in both revenue and profitability. The company surpassed analyst expectations in its most recent quarter, with earnings per share jumping 83% year-over-year. This robust financial performance indicates Netflix’s ability to monetise its subscriber base effectively and manage costs while investing in growth.

Future Prospects

Netflix is diversifying its revenue streams through initiatives like mobile gaming and merchandise tied to popular shows. These efforts and ongoing improvements in content personalisation and user experience position Netflix well for continued growth in the evolving digital entertainment landscape.

Step-by-Step Guide to Buying Netflix Shares

Simply sign up for an international trading account on the Appreciate App to invest in Netflix shares from India. Your account will be activated after KYC verification. Then, you can add funds and buy whole or fractional shares of Netflix from India with low transaction fees and advanced security.

Here is the step-by-step process:

Step 1: Open an Account with Appreciate

1. Get the Appreciate app from the Google Play Store.
2. Provide your basic personal information and set up your login credentials to register.
3. Submit the required documents, such as your PAN card and proof of address, for KYC (Know Your Customer) compliance.

Step 2: Fund Your Account

1. Go to the “Funds Transfer” section and select “Add Funds.”
2. Pick your payment method (UPI, net banking, or debit card).
3. Enter the amount and complete the transaction.

Appreciate makes sending money to your US investment account easy with one-click transfers. You can also invest in top US stocks and ETFs with as little as ₹1 through fractional investing.

Step 3: Search for Netflix Shares (NFLX)

1. At the top of the app’s home screen, use the search bar and type “Netflix Co” or “KO”
2. Choose “Netflix Co (NFLX)” from the search results to view the stock details.

The app provides a user-friendly interface for finding and researching stocks like Netflix. It offers current stock prices, market capitalisation, historical charts, financial data, and the latest news and insights.

Step 4: Buy Netflix Shares

To buy Netflix (NFLX) shares through the app:

1. Tap on the “Buy” button on the KO stock page.
2. Enter the amount you wish to invest or the number of shares you want to purchase.
3. Review the order details, including the price, quantity, and total cost.
4. Confirm the transaction by tapping on the “Place Order” button.

Step 5: Monitor Your Investment

After your order is executed, keeping track of your investment is important. Regular monitoring helps you make informed decisions about holding, buying more or selling your shares.

Appreciate provides tools for real-time monitoring of your Netflix shares – it offers customisable alerts for price changes, dividend announcements, and other important events. The platform also provides regular market updates and analysis to help you stay informed about factors that might affect your investment.

Other Ways to Buy Netflix Shares in India

Indirect Investment via Mutual Funds or ETFs

For individuals wanting to diversify their investment portfolio to include Netflix without directly investing in individual shares, some alternatives are:

International Mutual Funds

International mutual funds that focus on US stocks provide a professionally managed approach to investing in companies like Netflix. These funds pool money from various investors and allocate it across various US equities, offering a hands-off investment strategy.

For instance, the Edelweiss US Technology Fund invests in US tech companies, which may include Netflix. These funds allow you to benefit from the growth of major US corporations without the complexity of direct stock trading.

ETFs Tracking US Markets

Exchange-traded funds (ETFs) trade on stock exchanges, similar to individual stocks, but represent a basket of securities, often tracking a specific index or sector. These instruments also typically have lower fees than mutual funds and offer the flexibility of buying or selling throughout the trading day.

For example, the Motilal Oswal NASDAQ 100 ETF tracks the NASDAQ-100 index and includes Netflix in its portfolio. Fund-of-funds like the Mirae Asset NYSE FANG+ ETF Fund of Fund offer more concentrated exposure to tech giants, including Netflix.

Tax Implications for Indian Investors

The Indian tax system has specific foreign investment income provisions, including dividends and capital gains. Let’s break down the key tax considerations you must consider when investing in Netflix shares.

Tax on Dividends

When Netflix pays dividends, the US government typically withholds a portion as tax. For Indian investors, this withholding rate is usually 25% of the dividend amount. However, you’re not taxed twice on this income – India allows you to claim a foreign tax credit for the tax paid in the US.

Capital Gains Tax 

If you sell your Netflix shares at a profit, you’ll need to pay capital gains tax in India. The tax rate depends on how long you’ve held the shares:

• For shares held for more than 24 months, you’ll pay long-term capital gains tax at a rate of 20% with indexation benefits (a method to adjust for inflation).
• If you’ve held the shares for less than 24 months, your gains will be added to your regular income and taxed as per your income tax slab.

Double Taxation Avoidance Agreement (DTAA)

India and the US have an agreement—Double Taxation Avoidance Agreement—in place, which is good news for investors. This agreement ensures you don’t pay tax on the same income in both countries. 

You’ll only pay tax in India for capital gains on US stocks like Netflix. This simplifies your tax calculations and prevents the hassle of navigating two different tax systems for the same investment income.

Risks and Considerations

Investing in Netflix shares from India can be an exciting opportunity to access the global streaming market. However, like any international investment, it comes with its own set of challenges, such as:

Currency Risk

When you invest in Netflix shares, you deal with two currencies – Indian Rupees (INR) and US Dollars (USD). The exchange rate between these currencies can vary significantly. If the INR weakens against the USD, your returns in rupee terms might decrease, even if the Netflix stock price rises in dollars.

Regulatory and Compliance Risks

Investing in US stocks from India involves navigating two different regulatory environments. Both Indian and US regulations can change, potentially affecting your investment. For instance, changes in India’s foreign investment policies or US securities laws could impact how you buy, hold, or sell Netflix shares. 

Market Volatility

The US stock market, where Netflix trades, can be quite volatile – the stocks are prone to sharp price swings based on factors such as company performance, industry trends, or broader economic conditions. For example, a single earnings report that misses expectations or shifts in the streaming landscape could significantly change Netflix’s stock price.

Conclusion

Venturing into international stocks like Netflix can be an excellent way to diversify your portfolio beyond domestic markets. This diversification can help spread risk and potentially enhance returns by tapping into global growth opportunities. If you’re intrigued by the prospect of adding Netflix or other US stocks to your portfolio, now is the time to take action.

Remember, platforms like Appreciate can significantly simplify your journey into international investing. With its user-friendly interface, educational resources, and streamlined processes, the platform makes it easier than ever for Indian investors to access US stocks like Netflix.

FAQs

How to buy Netflix shares in India?

To buy Netflix shares in India, you must open an international trading account with Appreciate that offers access to US stocks. Complete the account opening process, and fund your account. Once set up, you can order to buy Netflix shares through the Appreciate app.

How do I choose a brokerage platform for buying international shares?

When choosing a brokerage for international shares, consider factors like fees, available markets, research tools, and customer support. Also, look for brokers regulated by SEBI that offer access to US markets.

Are there any tax implications for investing in Netflix shares?

Investing in Netflix shares from India has tax implications – you may need to pay capital gains tax on profits when selling shares, and dividends may be taxed. Plus, the US withholds tax on dividends paid to foreign investors. 

What are the risks of investing in international stocks like Netflix?

Investing in international stocks like Netflix carries risks such as currency fluctuations, which can affect returns when converting to INR. You’re also exposed to US market conditions and regulations.