After seeing a startling downturn in the first quarter, Netflix is turning to Asia in an effort to both maintain growth in the one region where it is still adding customers and to replicate its success there elsewhere in the world.
Tony Zameczkowski, vice president of business development for Asia Pacific, stated in an interview that despite intentions to reduce overall spending, investment in Asia will continue to increase. This includes funding for the creation of local movies and television shows.
While Netflix will continue to provide low-cost, mobile-only membership across Asia, it is also looking to expand its partnerships with wireless carriers and digital payment firms to reach more potential users in a region where credit card use is less prevalent, he said. The platform needs to expand in these new markets as well to counteract saturation in North America and Europe, which is being addressed via the company’s Asia strategy.
The largest streaming service in the world is approaching a turning point. The firm recorded its first client loss in more than a decade in April, and despite tough competition from rivals, shares have risen sharply in recent years as subscriber counts have increased. After losing two-thirds of its market value since mid-November, Netflix is under pressure to revamp its content pipeline while reducing expenses.
Although the business has previously achieved progress in the Asia Pacific region, the global downturn provides additional motivation to capitalise on the success of South Korean mega-hits like “Squid Game” and “Hellbound,” which increased subscribers.
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