Netflix to Increase Asia Content Spending by 15% in 2023 as Revenue Growth Accelerates in the Region – Study
-
Loading... - Insyirah Goh
- 06 Mar 2023
- 68 Views
- 0 Like
- 0 Comment
Global streaming operation Netflix is forecast to spend $1.9 billion on local content in the Asia-Pacific region this year as group revenue from the region accelerates to 12%, according to a new report. The content investment spending figure represents a 15% hike.
Netflix will grow revenues this year by 12% year-on-year to exceed $4 billion compared with 9% growth in 2022, says a new report published on Monday by Media Partners Asia.
According to the Singapore-based research and analysis firm, Netflix’s revenue growth in 2023 will benefit from: a rebound in the lucrative but saturated Australia market, where Netflix’s performance will be gradually bolstered by advertising growth; robust levels of growth in Japan and South Korea, which generate high per user revenues; and material gains and contributions from India, Indonesia, Philippines and Thailand.
“The ad tier has seen a slow start in the three APAC markets. Australia is expected to see greater momentum through 2023, helping boost subscribers and revenues in a market where churn has been increasing,” said MPA executive director Vivek Couto in commentary.
“Japan will continue to grow as Netflix strives to grow impact with new scripted non-anime shows. Japan is critical to Netflix’s prospects in the region with the market contributing over a quarter to the company’s total APAC revenues in 2023,” said Couto.
Japan is Asia’s second largest economy and, as Netflix is not present in China, the streamer’s largest in the region. Physical media have only slowly given way to video streaming in the country, which boasts a large number of small local players and where, despite relatively low levels of SVOD penetration compared with developed markets in Europe and North America, industry consolidation is already under way. Amazon’s Prime Video is the streaming market leader in Japan, but Netflix has a strong presence and a growing roster of anime and other original content. Read More…
