In bad shape since its first loss of subscriber in 10 years, at the beginning of 2022, Netflix hopes to rebound in its Asia-Pacific region (APAC). According to information from Bloombergdespite a general drop in spending, the streaming giant will maintain its investments in local films and series.
Netflix wants to bounce back from the shock of the first quarter of 2022
For Tony Zameczkowski, Netflix’s vice president in charge of business development for APAC, there is no doubt that Asia presents ” lots of opportunities “. While the platform lost 2 million subscribers in the first quarter of 2022, the region gained 1.1 million.
The media still lacking in confidence in France and around the world
Growth certainly lower by 20% than that of 2021 for the same period, but growth all the same. While Asia accounts for 15% of Netflix’s 221.6 million subscribers worldwide, Bloomberg reports that some analysts are betting on an increase of 6.8 million subscribers in the next quarter, with 79% coming from Asia. The platform has been focusing on the region for several years.
Netflix has had some controversy in its APAC region: a series criticized in India for showing a Hindu woman and a Muslim man kissing, another in Vietnam because of a border line. However, it hopes to capitalize on the momentum of South Korea’s global hits Squid Game and Hellbound.
The platform should not only continue to invest in content, but also perpetuate and enrich some of its offers. Maintain low-cost mobile subscriptions existing only in APAC, forge more partnerships with operators and digital payment companies, an advantage over its competitors in a market where the use of bank cards is less widespread.
Tony Zameczkowski, who explained to Bloomberg that Netflix only “does what to start to invest in Asia, hopes to take advantage of a growth model for markets similar to APAC, “ There are similarities between emerging Asia and other emerging markets like Africa and Latin America. Lessons learned here can be easily replicated or leveraged by these regions “, he describes.
The conquest of Asia will not be a long calm river
The Asian market, although less saturated than the North American or European market, is not without competitors. Amazon and Disney are present there, as well as powerful local players. Viu, billionaire Richard Liu’s platform, surpassed Netflix in the number of subscribers in Southeast Asia in 2021, behind Disney.
Netflix will also have to win over a larger number of subscribers than in its Western markets. The average revenue per subscription collected by the platform in the APAC region is $9.21, compared to $14.91 in North America. Only a massive expansion will allow the streaming giant to consider taking action to increase this income and convince its shareholders that the loss of subscribers at the start of 2022 was only an epiphenomenon.