Netflix Doubles Down on Content for Subscribers in Asia
Netflix Works to Maintain Its Lead
Netflix (NFLX) plans to double its spending on original content for subscribers in Asia next year. The region is one of the fastest growing markets for streaming services. Analysts expect that revenue from streaming in Asia Pacific, excluding China, will hit $15 billion by 2025, which is twice the current levels.
At the moment, Netflix is the top streaming service in Asia Pacific, with a 35% share of industry revenue. Amazon Prime Video (AMZN) is in second place, controlling 10% of the market. However, regional companies are starting to catch up, including Hong-Kong-based Viu, and WeTV, which is backed by Chinese conglomerate Tencent (TCEHY).
Creating Specialized Content
Netflix made its debut in Asia in 2015. Since then, the company has released more than 220 original titles for the market. Over the past two years, the company has spent nearly $2 billion on creating and licensing content specifically for the region. Now it plans to ramp up spending even more, specifically spending on original content creation.
Netflix has recently produced several popular shows geared toward viewers in Asia, including Kingdom, a Korean period zombie show, and Indian Matchmaking, a reality dating series. Next year Netflix plans to make a Korean version of its popular Spanish show, La Casa de Papel. It will also create five new Japanese anime shows, as well as more content for Southeast Asian countries like Thailand and Indonesia.
Netflix’s Pricing Strategy
Netflix has 23.5 million subscribers in the Asia Pacific region. The area is the fastest growing of Netflix’s four main global markets. However, the Asia Pacific region is also the only market where Netflix’s average revenue per subscriber has fallen over the past three quarters.
Netflix currently offers mobile-only plans for less than $5 per month in the Asia Pacific region. This has helped the company grow its user base in India, Indonesia, Malaysia, the Philippines, and other countries. But as the streaming giant pours money into content, it will need to analyze the market carefully and decide whether or not its subscription plans are optimally priced.
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