Though the Asia-Pacific region is its smallest, it has become Netflix’s biggest area of growth after the past three years, seeing revenue increase by 152% between Q3 2017 to Q3 2019, when membership grew by 148%. EMEA (Europe, Middle East, and Asia) also saw a smaller percentage of growth, but it is a larger market for Netflix.
Membership over the three-year period increased by 132% while revenue increased by 105%. Netflix’s other non-US regional market – Latin America – saw revenues increase by 71% and membership grow by 61% for the period. Netflix says that it is in 33% of broadband homes in the region.
With reports claiming that it could lose 4 million US subscribers in the coming year, Netflix has recently continued to extend its investment in foreign markets. CEO Reed Hastings recently said that the company plans to spend INR30 billion (€380 million) on producing content for the Indian market in 2020 while it also has signed a three-year production and distribution agreement with leading South Korean producer/broadcaster CJ ENM.
The next challenge for Netflix, according to experts in the matter, would be to bring per-user revenue from its markets worldwide up to the same level as that in the US and Canada. In Asia -- its fastest-growing worldwide market -- average revenue per user came in at $9.31 which puts it ahead of Latin America, at $8.21, but well behind EMEA at $10.26 and the US and Canada at $10.26.
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