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Netflix's Solid Content Portfolio Aids Growth in Asia Pacific
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Netflix (NFLX - Free Report) is growing rapidly in the Asia Pacific owing to an expanding content portfolio in Korea, India, Indonesia and Vietnam.
The company’s expanding Korean content portfolio is expected to continue driving growth in 2020. Netflix recently announced The Silent Sea (working title), a mystery sci-fi thriller set in the future where Earth is running out of water. Actor Jung Woo-sung will serve as an executive producer of the show.
Moreover, the streaming giant has teamed up with director Lee Eung-bok to produce a new original series Sweet Home based on a popular webtoon with the same name. The new series is produced by Studio Dragon, a division of CJ ENM with which Netflix recently signed a three-year partnership.
Apart from CJ ENM, Netflix has inked a partnership with JTBC Content Hub to stream the latter’s prime-time TV dramas across more than 190 countries, beginning 2020. As part of the expanded deal, JTBC and Netflix will co-develop and showcase JTBC’s prime-time TV dramas globally. The companies have been partners since April 2017.
Further, Netflix announced Move to Heaven, an original series starring Lee Je-hoon and Tang Jun-sang in lead roles. Additionally, Korean series My Holo Love will be released globally on Feb 7, 2020.
Asia Pacific: The Fastest Growing International Market
In a recent regulatory filing, the company disclosed subscriber numbers and financial performance of the last three years of four geographic segments — the United States and Canada (UCAN); Europe, Middle-East and Africa (EMEA); Latin America; and the Asia Pacific.
Despite UCAN being the largest market for Netflix, reporting 67.11 million paid subscribers as of Sep 30, the region had the lowest customer additions, with membership increasing 14.9% since the end of the third quarter of 2017.
Conversely, the company witnessed strong growth in its international markets. Notably, membership increased 132% in the EMEA region to 47.36 million subscribers and 61% in Latin America to 29.38 million subscribers since the end of third-quarter 2017.
The Asia-Pacific region, Netflix’s smallest market, witnessed the highest growth where membership increased 148% to 14.49 million subscribers.
International Content Strength to Aid Prospects
Apart from Korea, the Asia Pacific’s growth has largely been driven by Netflix’s investments in developing regional content in Vietnam and India. Moreover, the company’s strategy of offering low-priced mobile plans in India and Indonesia is expected to drive growth.
In September, Hau Due Mat Troi (Descendants of the Sun Vietnam) became the first Vietnamese series to be released on Netflix, following the screening of movies like Trung So (Jackpot) and Hai Phuong (Furie).
Moreover, Netflix has been eyeing the Indian market for growth. The company recently announced that it will spend $420 million this year and next on producing original content for the audience in India.
India has emerged as a crucial content hub for the streaming giant. The streaming giant has commissioned around 40 original series and films in the country, including 15 original series and about 24 original local language films in the country to date.
Netflix is riding on the success of Sacred Games and animated kids show Mighty Little Bheem. Notably, Mighty Little Bheem was watched by more than 27 million households outside India.
Additionally, shows like Ghoul, Selection Day, Little Things, Lust Stories and Delhi Crime were well received by the audience as well as critics in India.
Furthermore, Netflix is set to release Jamtara - Sabka Number Ayega on Jan 10, 2020.
International Footprint to Boost Competitive Position
Netflix’s focus on streaming regional content has been leading to international growth. In third-quarter 2019, the company added 6.26 million paid international members, up 23.5% year over year.
However, the company has been affected by negative headlines related to heightening competition in the streaming space. Notably, Apple (AAPL - Free Report) launched its much-anticipated Apple TV+ on Nov 1, followed by Disney’s (DIS - Free Report) Disney+. Other notable upcoming services include NBCUniversal’s Peacock and HBO max.
Furthermore, Amazon (AMZN - Free Report) has been undertaking initiatives to fortify presence in the streaming space through its prime video service.
Nevertheless, Netflix’s focus on the international business is expected to help it counter competition in the streaming market. For the fourth quarter, the company expects to add 7 million paid subscribers in the International Streaming segment.
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Image: Bigstock
Netflix's Solid Content Portfolio Aids Growth in Asia Pacific
Netflix (NFLX - Free Report) is growing rapidly in the Asia Pacific owing to an expanding content portfolio in Korea, India, Indonesia and Vietnam.
The company’s expanding Korean content portfolio is expected to continue driving growth in 2020. Netflix recently announced The Silent Sea (working title), a mystery sci-fi thriller set in the future where Earth is running out of water. Actor Jung Woo-sung will serve as an executive producer of the show.
Moreover, the streaming giant has teamed up with director Lee Eung-bok to produce a new original series Sweet Home based on a popular webtoon with the same name. The new series is produced by Studio Dragon, a division of CJ ENM with which Netflix recently signed a three-year partnership.
Apart from CJ ENM, Netflix has inked a partnership with JTBC Content Hub to stream the latter’s prime-time TV dramas across more than 190 countries, beginning 2020. As part of the expanded deal, JTBC and Netflix will co-develop and showcase JTBC’s prime-time TV dramas globally. The companies have been partners since April 2017.
Further, Netflix announced Move to Heaven, an original series starring Lee Je-hoon and Tang Jun-sang in lead roles. Additionally, Korean series My Holo Love will be released globally on Feb 7, 2020.
Asia Pacific: The Fastest Growing International Market
In a recent regulatory filing, the company disclosed subscriber numbers and financial performance of the last three years of four geographic segments — the United States and Canada (UCAN); Europe, Middle-East and Africa (EMEA); Latin America; and the Asia Pacific.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Despite UCAN being the largest market for Netflix, reporting 67.11 million paid subscribers as of Sep 30, the region had the lowest customer additions, with membership increasing 14.9% since the end of the third quarter of 2017.
Conversely, the company witnessed strong growth in its international markets. Notably, membership increased 132% in the EMEA region to 47.36 million subscribers and 61% in Latin America to 29.38 million subscribers since the end of third-quarter 2017.
The Asia-Pacific region, Netflix’s smallest market, witnessed the highest growth where membership increased 148% to 14.49 million subscribers.
International Content Strength to Aid Prospects
Apart from Korea, the Asia Pacific’s growth has largely been driven by Netflix’s investments in developing regional content in Vietnam and India. Moreover, the company’s strategy of offering low-priced mobile plans in India and Indonesia is expected to drive growth.
In September, Hau Due Mat Troi (Descendants of the Sun Vietnam) became the first Vietnamese series to be released on Netflix, following the screening of movies like Trung So (Jackpot) and Hai Phuong (Furie).
Moreover, Netflix has been eyeing the Indian market for growth. The company recently announced that it will spend $420 million this year and next on producing original content for the audience in India.
India has emerged as a crucial content hub for the streaming giant. The streaming giant has commissioned around 40 original series and films in the country, including 15 original series and about 24 original local language films in the country to date.
Netflix is riding on the success of Sacred Games and animated kids show Mighty Little Bheem. Notably, Mighty Little Bheem was watched by more than 27 million households outside India.
Additionally, shows like Ghoul, Selection Day, Little Things, Lust Stories and Delhi Crime were well received by the audience as well as critics in India.
Furthermore, Netflix is set to release Jamtara - Sabka Number Ayega on Jan 10, 2020.
International Footprint to Boost Competitive Position
Netflix’s focus on streaming regional content has been leading to international growth. In third-quarter 2019, the company added 6.26 million paid international members, up 23.5% year over year.
However, the company has been affected by negative headlines related to heightening competition in the streaming space. Notably, Apple (AAPL - Free Report) launched its much-anticipated Apple TV+ on Nov 1, followed by Disney’s (DIS - Free Report) Disney+. Other notable upcoming services include NBCUniversal’s Peacock and HBO max.
Furthermore, Amazon (AMZN - Free Report) has been undertaking initiatives to fortify presence in the streaming space through its prime video service.
Nevertheless, Netflix’s focus on the international business is expected to help it counter competition in the streaming market. For the fourth quarter, the company expects to add 7 million paid subscribers in the International Streaming segment.
Netflix currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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