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.

---

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS120303