It does point to the kind of love for that brand and for the growing love for those unscripted brands on Netflix and some of them will be live.And I do think sometimes those results-oriented shows do play out a little bit better on live and they do generate a lot of conversation. But keep in mind, like on Chris Rock, about 90% of the viewing have been after, but it doesn’t change the fact that it was a big event when it happened live.Jessica Reif Erlich Is it a big driver of the advertising?Ted Sarandos We have not got — go ahead, Greg.Greg Peters No. Go ahead, Ted. You take it.Ted Sarandos I will just say we not currently have advertising in the live broadcast.Jessica Reif Erlich Right. I have one more question on password sharing, I will just go back to that for a second.
But of the 30 million you can and 100 million-plus global borrowers, that sounds like from your release, that’s actually the number of households. What is the number of potential subs or add-ons, I mean, what is the potential conversion from these 100 million-plus households?Greg Peters Well, to some degree, I mean, the borrowers, those borrowers set represent well-qualified people in the sense that they have all the technical need to get to Netflix, the smart TV, the broadband access, they know how the system works, they have clearly enjoyed content on the service before.So, having said that, we see a sort of a range of engagement amongst those borrowers. So some folks are watching as much of our shows as a normal paying account and those folks are very strong likelihood to convert, I would say, and then we see that tailor off — taper off rather through that range of folks.And if you are watching much less, it’s much less likely that you will ultimately convert.
But even in that case, I’d say, this represents a really important structural shift where we will develop that one-to-one relationship without pricing distortion, without membership distortion with a whole new range of members. So we will see membership grow through that approach. We will see revenue grow through it as well.But we will also see a situation where in high viewer penetration markets like the United States that you mentioned the stats there, some of those folks won’t convert, but they will represent essentially a pool of people that we can then go after with improving our offering and more amazing movies, Ted talked about that, more amazing series, more amazing games in the fullness of time, that will get those folks ultimately to convert to our members as well.Jessica Reif Erlich And then just also going back to like advertising, what are the advertising features that you are most excited about?Greg Peters Well, again, we are sort of in this mode where there’s what I am super excited about and then there’s the work that we really need to do for the business, which I am also excited with that because it’s just about how we get to be bigger.So there’s sort of the brass tacks pieces, which are a lot about measurement, verification, targeting, expanding the ways for advertisers to buy.
So I am excited from a sort of immediacy of business returns for those pieces.But then when you think about like from a technology and product experience perspective, what am I excited about there? That’s again where I think we have an opportunity to bring the specific characteristics of a premium, fully addressable, fully targetable, fully deterministic ad streaming system to this world.And so that means that we can do a whole range of things in terms of how we flight creatives from brands associated with certain shows and things about how we tailor the user experience to be specific to what the user needs in a moment rather than having a one size fits all set of rules in terms of how we flight ads.So there’s just a whole amazing line of innovation that we can go after, we will be going after for, frankly, for years and we don’t even know what all those things are, because mostly, we will be working with advertisers and members to try things and then let them tell us what’s working and what’s not.Jessica Reif Erlich What do you consider the walk phase?Greg Peters Well, I think, we are sort of getting into the walk phase and that’s probably a combination of things.
One is scale, obviously, scale is relevant in the business so we are getting to a certain size of scale that shifts how advertisers think about us.Part of it is the technical features that advertisers — that face advertisers, so that’s very much along the lines of those measurement, verification, targeting the programmatic buying capability, that’s a component of it.So those, I think, really constitutes, I’d characterize that we are really — we are basically getting into that middle phase of growth, and we have got a lot of work, frankly, to do in that before we get to the run phase.Spence Neumann Yeah. We talked about it’s a multiyear build and a gradual build and crawl, walk, run and we are only a couple of quarters into this. So I don’t know, Greg, if you would agree, but I would hope we are in the walk phase by the end of the year and into next year.
But I think this is a year of getting from crawl to walk.Greg Peters Yeah. That sounds right.Jessica Reif Erlich And then I just wanted to clarify something, Spence, I think you said, this is a 50% margin. I mean, typically, advertising could be as high as 80% or 85% margins. Is that — do you expect to build up to that or do you think it’s really just a 50%-plus business?Spence Neumann Well, I put plus in there. So I said at least 50% and it was really just to highlight the fact that we are still in startup mode of this business and so leaning a little conservative. But, yes, our expectations over time is that it would be meaningfully over 50%, but I don’t want to give a specific number yet.Jessica Reif Erlich Okay. Moving on to gaming, can you give us some data points on engagement and what you are seeing on retention?Greg Peters Yeah.
I am not going to give you those specific points, but let me just review sort of where we are at. More broadly, we have got 55 games out to-date. We have got 40 more in the queue for this year. There’s very exciting games.If you want to try a few out, I’d recommend Terra Nil. That’s a reverse city builder, sort of twist on that genre. You have got Mighty Quest launching today. Our first new game from an internal studio, which is OXENFREE II is coming later this year. So you can sort of see it build into a combination of licensing and now layering in internally-developed games into that.And it’s really — it’s following a trajectory that we have seen before, I would say, on these other new content categories that we have added, if you think about film and you heard folks here talk about sort of that film progress or non-fiction or international, where we sort of build into this over a multiyear period.And to reinforce, you mentioned those metrics, I mean, the fundamental goal here, obviously, is to give our members a new entertainment modality and more ways to enjoy incredible universes and deepen their fandom.And we do that with an effort to drive the primary metrics we have on the consumer facing side, which is engagement with the service, which leads to retention and incredible stories that people are talking about games, that they are must-play games that create buzz off the service and motivate people to sign up.Jessica Reif Erlich Are there plans to directly monetize games, for example, advertising or licensing IP to game developers?Greg Peters Not currently.
So we think that we are very consistent with what we have done in other parts of the business. The best thing for us to do is really focus on the core initiative, which for us right now is how do we bring games, end games based on our IP to our members, to fans of that IP directly.And also, we believe that we want to have a differentiated gaming experience and part of that is giving game creators the ability to think about building games purely from the perspective of player enjoyment and not having to worry about other forms of monetization, whether it be ads or in-game payment.Jessica Reif Erlich So maybe turning to India, which is one of the biggest global markets and one of the fastest growing markets really in the world right now. Spence, you mentioned the pricing change in 2021.
And Ted, you recently said at a panel earlier in the year, I think, you were in India…Ted Sarandos Yeah.Jessica Reif Erlich … that is your fastest growing market and you have given the statistics engagement of 30%, revenue up 24%. But I think, Ted, you said that you are increasing your local originals from 28% last year. Can you just talk a little bit about this market, like, what are your longer term plans? Is it actually profitable or is this something that we — where we can see a real change in contribution?Ted Sarandos Look, I think what we have talked about earlier when we get the pricing a little better more suited to the market, you can see that we can grow revenue, and therefore, and we grow engagement. We have to get the content that people just really flip out for.We have seen a steady improvement in that quarter-over-quarter, both in our films and our series.
