NETFLIX SET TO DOUBLE ORIGINAL CONTENT SPENDING IN ASIA

Netflix is planning to double its spending on original content in Asia next year to help stay ahead in a crowded streaming market, where billionaires such as China’s Pony Ma and Hong Kong’s Richard Li are seeking to expand their presence in the market. "After producing widely watched Asia shows such as the Korean zombie period thriller 'Kingdom' and reality series “Indian Matchmaking,” the world’s largest streaming platform is seeking to cement its stronghold in a region that’s seen the fastest growth in subscribers," said Minyoung Kim, Netflix’s Vice President of Content.

Streaming revenue in the Asia Pacific, excluding China, will more than double to US$15 billion by 2025, Media Partners estimates. Netflix, with a 35% share of streaming revenue in the region by the end of 2020, already corners the largest slice. Amazon Prime Video is second with a 10% market share, according to the research agency. The Asia Pacific added 46% of Netflix’s new subscribers in the quarter to September, making it the largest contributor while its revenue rose 66 percent compared to last year, Netflix said in a 20th October letter to shareholders. 

In terms of Japanese content, the streamer confirmed the making of a Korean adaptation of its hit Spanish series, “La Casa de Papel,” or “Money Heist” in English. In October, Netflix announced five new anime projects including “Thus Spoke Kishibe Rohan,” a spin-off from the popular Japanese manga series “JoJo’s Bizarre Adventure.” The company will also look to invest in content from India and Southeast nations such as Thailand and Indonesia, according to Kim. 

Netflix’s sub-$5-a-month, mobile-only plans have earned it more users in India, Indonesia, Malaysia, the Philippines, and Thailand. That helped push its Asia Pacific subscriber base to 23.5 million, making it the fastest-growing among the firm’s four global market clusters. But the region is also the only market for the firm that saw average revenue per user dropping in the past three quarters. While cheaper plans help Netflix widen its user base in emerging markets, the streaming giant may “continue to face pricing pressure over the next two to three years in India and Southeast Asia” amid intense competition," said Singapore-based Vivek Couto, executive director of Media Partners.

Kim declined to elaborate on what the 2021 budget for originals would be beyond saying Netflix is looking to double its investment from this year on securing exclusive content. Research firm Media Partners Asia said the amount is likely to be at least US$1 billion. The U.S. giant said it has spent almost US$2 billion since 2018 on original and licensed local content. Since its Asia launch in 2015, Netflix has released over 220 original titles. Streaming companies are also facing increased regulatory scrutiny in many countries. India last month brought the platforms under the purview of its Ministry of Information and Broadcasting, raising fears of censorship. Indonesia and Vietnam are also mulling similar moves.“We want to be as compliant as possible to the regulations in those markets,” Kim said. "But it doesn’t change the core philosophy of how we approach content. Where we have been ahead of our competitors is being closer to the local markets, finding great storytellers, and seeing things from a local perspective. Our primary goal is local impact.”