Netflix Plots Next Moves In Asia

18 April 2018

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By Mike Savage

Netflix is well on its way to becoming a truly global company, now with more paying subs outside the US than at home, switching in Q2 last year. While streaming revenues are still slightly weighted to the domestic market, it’s only a matter of time before that changes too, most likely in the first half of this year.

Netflix isn’t for everyone, however; at least, not yet. Asia has only played a modest role in the company’s remarkable growth story so far, contributing less than 5% of the global base at the end of 2017 according to estimates from Media Partners Asia (MPA).

While Netflix’s brand cachet and global hits have helped drive sign-ups among an affluent top tier across the region ex-China, the streaming service is contending with the same localization hurdles that other SVOD players are facing: getting enough driver content in place and boosting product awareness while overcoming concerns over data costs as well as limited ways to pay.

Nonetheless, Netflix’s customer base in Asia, mostly paying direct, already makes it one of the region’s most successful SVOD services, with particular traction in recent months in India, the Philippines and Taiwan.

Future growth hinges on aligning content and delivery with Netflix’s target audience in different territories, supported by partnerships with telcos, pay-TV operators, device manufacturers and payment companies as well as Netflix’s own initiatives.

“The goal is incremental subscribers but also engagement,” explains Netflix’s VP of business development for Asia, Tony Zameczkowski. “Localization is important because what drives acquisition and engagement is the product market fit.”

The latest issue of MPA’s Asia Media & Telecoms Digest reviews Netflix’s partnership strategy in Asia, and the role these deals play in marketing, payment and reducing churn.

HIGHLIGHTS

  • Focus is on retaining top tier subs, while incrementally building the base
  • Telcos and device manufacturers key to Netflix’s partnership strategy

To find out more, please get in touch with Lavina Bhojwani


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