Netflix Set To Invest $1.9 Billion On APAC Content In 2023
By Melissa Kasule
Netflix will invest US$1.9 billion on local content in the Asia-Pacific region in 2023 as revenues in the region rise by 12 per cent, according to a report by Media Partners Asia.
Netflix’s forecasted US$1.9 billion investment in local content within the Asia Pacific region this year will represent the 47 per cent of revenues, driven by Korea and Japan, followed by India, Australia and parts of Southeast Asia.
MPA’s research analysts revealed Netflix’s revenue growth 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 higher-ARPU revenue growth in Japan and Korea and material gains and contributions from India, Indonesia, Philippines and Thailand.
MPA executive director Vivek Couto said: “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. 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. India, Indonesia, Thailand and the Philippines will contribute through a mix of subscriber and ARPU growth with impact in the SEA markets likely to be felt especially in H2 as these four markets contribute more than 20 per cent in aggregate to 2023 revenues.”